Toronto's main stock index appeared headed for a lower open on Friday, tracking global equities and commodity prices, after the U.S. Federal Reserve dashed hopes of fresh economic stimulus and expectations of a bailout for Spanish banks failed to impress markets.
Canada stock futures traded down 0.32%. The S&P/TSX Composite Index slid 41.28 points to end Thursday’s trading at 11,592.12.
The Canadian dollar was up 0.26 of a cent to 97.61 cents U.S.
Among Canadian stocks to watch this morning, Sprott Power Corp. raised its annual dividend by 32.5%.
Engineering firm Genivar Inc. received a green light to acquire the entire issued and to be issued ordinary share capital of the British consulting firm WSP Group Plc. Genivar on Thursday offered to acquire WSP in a cash deal valued at approximately $442 million.
On the economic ledger, Statistics Canada told us that the jobs picture was basically the same in May, following two months of large gains, the unemployment rate remaining at 7.3%.
ON BAYSTREET
The TSX Venture Exchange gave back 6.56 points to 1,296.08. The Nasdaq Canada index tacked on 1.33 points to 369.41
ON WALLSTREET
U.S. stocks could struggle Friday on investor disappointment that Federal Reserve Chairman Ben Bernanke did not signal more stimulus is on the horizon.
Futures for the Dow Industrials dipped 50 points, or 0.4%, to 12,356, just more than half an hour before the opening bell, while futures for the S&P 500 gave back seven points, or 0.5%, to 1,303. Futures for the tech-rich Nasdaq dropped 7.75 points, or 0.3%, to 2,522.75.
Heading into Friday trading, the Dow Jones industrial average was up more than 342 points, or 2.8%, for the week. The S&P 500 index was up nearly 36 points, or 2.9%, and the Nasdaq composite was more than 83 points, or 3%, higher.
Overseas markets were selling off in reaction to testimony from Bernanke to a congressional panel Thursday. He said the U.S. central bank stands ready to act, but gave no indication that additional asset purchases are imminent.
The comments took the air out of an earlier rally sparked by a surprise rate cut by the People's Bank of China.
Asian markets, which had all closed Thursday ahead of both the Chinese rate cut and Bernanke comments, ended Friday trading lower, with the Shanghai Composite closing down 0.5%, the Hang Seng in Hong Kong losing 0.9%, and Japan's Nikkei falling 2.1%
European stocks were lower in midday trading. Britain's FTSE 100 slipped 0.9%, as did the DAX in Germany. France's CAC 40 declined 1%
Oil for July delivery continued its slide, losing $2.50 to $82.32 U.S. a barrel.
Gold futures for June delivery fell $8.30 to $1,579.70 U.S. an ounce.
