Markets in Canada’s largest centre were set to follow global markets lower on Wednesday as investors held back from betting on riskier assets amid escalating North Korea tensions.
The S&P/TSX Composite Index settled into the red 1.62 points to close Tuesday at 15,256.35. September futures deducted 0.2% Wednesday morning.
The Canadian dollar cost 78.9 cents U.S.
North Korea said it was considering an attack on the U.S. Pacific territory of Guam just hours after President Donald Trump warned Pyongyang that any threat to the U.S. would be met with "fire and fury".
BlackBerry Ltd shares fell as much as 3.6% on the Toronto Stock Exchange after brokerage Goldman Sachs issued a "sell" recommendation on the stock, citing concerns about rising competition in its mobile software business.
National Bank of Canada cut the rating on Cargojet to sector perform from outperform
CIBC cut the rating on Kinaxis to neutral from outperform
Canaccord Genuity cut the rating on Magellan Aerospace to hold from buy
On the macroeconomic calendar, Statistics Canada reported Canadian municipalities issued $8.1 billion worth of building permits in June, up 2.5% from May and the second highest value on record.
The agency attributes the rise to higher construction intentions for multi-family dwellings and commercial buildings.
Canada Mortgage and Housing Corporation, meanwhile, said the trend in housing starts was 217,550 units in July, compared to 215,175 units in June.
ON BAYSTREET
The TSX Venture Exchange declined 0.51 points Tuesday to 765.17
ON WALLSTREET
U.S. stock index futures pointed to a slightly lower open on Wednesday, as investors focus on rising geopolitical tensions between the U.S. and North Korea, and get ready to pore over another slew of corporate earnings.
Ahead of the opening bell, futures for the Dow Jones Industrials capsized 44 points, or 0.2%, to 21,986. Futures for the S&P 500 dropped 10.25 points, or 0.4%, to 2,462.50. NASDAQ futures faded 39 points, or 0.7%, to 5,875.50
Mylan Labs, Wendy's, 21st Century Fox, Office Depot and e.l.f. Beauty will be some of the leading brands set to publish earnings before and after the bell.
On the data front, productivity and costs data are due out early this morning followed by wholesale trade at 10 a.m. ET. Mortgage applications rose by 3% last week, boosted by a drop in rates.
In the political sphere, investors will be keeping a close eye on the rising tensions between North Korea and the U.S. on Wednesday.
On Tuesday, U.S. President Donald Trump warned the Asian country about facing "fire and fury" if North Korea delivers more threats against the U.S.
Overseas, European markets were slightly in the red, while the Nikkei 225 in Japan declined 1.3%, and Shanghai’s CSI 300 gave up 1.17 points
Oil prices gained 32 cents to $49.49 U.S. per barrel.
Gold prices gained $18.30 to $1,280.90 U.S. an ounce.
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