The Toronto stock market headed for a negative open Thursday as worries about Europe’s banks discouraged buying and pushed commodities lower.
In corporate news, First Quantum Minerals Ltd. will be in focus after the Vancouver miner said it is selling its mines in Congo and settling legal claims for $1.25 billion U.S. The company said Thursday it had struck a deal with Eurasian Natural Resources Corp. PLC to dispose of its residual claims and assets in the Kolwezi tailings project, and the Frontier and Lonshi mines and related exploration interests.
Australia-listed PanTerra Gold Ltd. has made an all-stock takeover offer for Vancouver-based Novus Gold Corp., which has two highly prospective copper and gold concessions in the Dominican Republic.
A flight to the safe-haven status of the U.S. dollar pushed the Canadian dollar down 0.49 of a cent to 98.29 cents U.S.
U.S. stock futures appeared softer as well. Dow futures were down six points, or 0.05%, at 12,350, while S&P 500 futures declined 1.8 points, or 0.1%, to 1,271.20, and Nasdaq futures dipped 3.75, or 0.2%, to 2,325, about half an hour before the New York Stock Exchange opened.
European stocks backtracked amid danger signals from France, where a bond auction resulted in higher yields and stoked concerns about Europe's sovereign debt crisis.
Banking stocks led losers as France's CAC 40 fell 1.4%, Britain's FTSE lost 0.9% and Germany's DAX gave up 1.1%.
The euro hit its lowest level in more than 15 months and bond yields rose across Europe after France had to pay 3.29% on 10-year bonds at an auction, compared with 3.18% last time. It sold 4.02 billion euros worth of debt.
Markets have been bracing for France to lose its AAA rating after Standard & Poor’s warned in early December of a mass downgrade due to concerns about the bloc’s two-year old debt crisis.
France is seen at a greater risk of contagion from the euro-zone debt crisis than Germany, but the real test comes next week, when Spain and Italy issue bonds.
The euro fell 0.8% to around $1.2838 U.S.
Japan's Nikkei 225 was 0.8% lower, though Hong Kong’s Hang Seng index progressed 0.5%
Crude was down 30 cents at $102.89 U.S. a barrel.
Gold declined $3.40 to $1,609.30 U.S. an ounce.
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