Canadian stocks looked set to open lower on Wednesday as poor data from China heightened concerns over global growth, while a disappointing German bond sale increased investor uncertainty.
Among Canadian stocks to watch this morning, oil concern Nexen Inc. confirmed its exit from Yemen's Masila oilfield, the troubled Arab country's largest, after its government refused to renew the company's operating licence.
Franco-Nevada Corp., the royalty and metal streaming company said on Tuesday it will raise $340 million through an equity financing, to power acquisitions and working capital.
Stateside, things looked far from rosy for American investors on their way into Thanksgiving break. Dow Futures slipped 0.8%, or 92 points, to 11,355, while S&P Futures dipped 0.7%, or 8.8 points, to 1,174, while Nasdaq Futures collapsed 0.6%, or 13.25 points, to 2,201.00
Commodity currencies, such as the Canadian dollar fell. The loonie was trading at 95.95 U.S. cents as the U.S. dollar rallied to its highest against a basket of major currencies in seven weeks.
Asian stocks had a tough time of it, too, Wednesday, with the Shanghai Composite ending the session 0.7% lower and the Hang Seng in Hong Kong tumbling 2.1%. Japanese markets were closed Wednesday for a holiday.
European stocks were mixed in morning trading. Britain's FTSE 100 slipped 0.5%, the DAX in Germany added 0.6% and France's CAC 40 slid 0.1%.
One of Germany’s worst bond sales since the launch of the euro sparked concerns the debt crisis was even beginning to threaten Berlin. The Bundesbank was forced to buy 39% of the six billion euros of debt Germany had hoped to sell to investors after banks bought just 3.644 billion euros of the issue.
Yields on 10-year German Bunds surged 5.5 basis points to 1.964%. Italian and Spanish bond yields dipped after reports of intervention in the bond markets from the European Central Bank.
Germany’s debt agency said the shortfall in the sale reflected worsening market nerves and that it would sell back the retained amount to investors on secondary debt markets and that Germany would not face a funding shortage.
Adding to investors' concerns was a report showing that a Chinese manufacturing index slowed to 48 in November from 51 in October -- the lowest reading since March 2009. A number below 50 indicates a contraction. The slump in new factory orders revived worries that China may be headed for a hard landing.
Gold eased, dipping $8.10 to $1,694 U.S. an ounce.
Crude was down 96 cents to $97.05 U.S. a barrel.
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