Canada's resource-heavy main stock index looked set to open lower on Thursday on a fall in commodity prices, as weak economic data from China and Germany added to investors' woes after the U.S. Federal Reserve on Wednesday dashed hopes of a new round of quantitative easing.
The S&P/TSX Composite Index docked 29.02 points, to conclude Wednesday’s trading at 11,759.34. Canada stock futures traded down 0.1%.
Among Canadian stocks to watch this morning, Yukon-Nevada Gold Corp. said its CEO, Robert Baldock, resigned. CFO Shaun Heinrichs and COO Randy Reichert will now also serve as co-CEOs
Gazit-Globe Ltd said it plans to take Gazit America private for $7.32 per share, valuing the company at about $170.6 million.
Natural gas producer Encana Corp. will speed up its hunt for oil and natural-gas liquids as it looks to diversify its production away from low-value natural gas.
Imperial Oil Ltd. formally withdrew a highly contested plan to truck huge loads of equipment over a mountain pass on the Idaho/Montana border, having already moved them to its Alberta oil sands project via alternative routes.
On things economic, Statistics Canada said this morning that retail sales swooned 0.5% in April. In volume terms, retail sales decreased 0.8%, the third decline in four months.
On the brighter side, those receiving regular Employment Insurance benefits decreased for the third straight month in April, down 28,600, or 5.3%, to 513,700.
ON BAYSTREET
The TSX Venture Exchange stepped back 9.91 points Wednesday to 1,254.57. The Nasdaq Canada index slid 2.41 points to 377.29
The Canadian dollar was up 0.22 of a cent this morning to 97.97 cents U.S.
ON WALLSTREET
U.S. stocks were poised for a flat open Thursday, following disappointment in the Federal Reserve's limited action and more signs of a global economic slowdown hitting both China and Europe.
Futures for the Dow Industrials removed eight points to 12,755, about 30 minutes before the opening bell, while futures for the S&P 500 forged ahead 0.7 points to 1,351.40. Futures for the tech-rich Nasdaq gained 1.25 points to 2,618.50.
Economically speaking, there were 387,000 first-time filings for unemployment benefits in the U.S., during the week ended June 16, little changed from the prior week but a bit above the forecast of 380,000 from the economists surveyed by Briefing.com.
Existing home sales for May are expected to come in at an annualized rate of 4.56 million in the 10 a.m. ET report. The Conference Board's Leading Economic Indicators index for May is expected to remain unchanged, after decreasing by 0.1% in April. And the Philadelphia Fed's manufacturing index is expected to decline by 0.2%, far less than the 5.8% drop a month ago.
Investors have a number of economic reports to consider, as they continue to digest the news that the Fed is extending its "Operation Twist" program due to the central bank's forecast of greater economic weakness.
Overseas economic reports released Thursday show it's not just the U.S. where the economy is weaker than hoped.
The preliminary report for HSBC Manufacturing Purchasing Managers' Index showed Chinese manufacturing fell to a seven-month low -- a sign that factories there are being hit by sluggish demand.
Meanwhile, Europe's PMI index for June remained near a three-year low, as manufacturing output in Germany -- the most important European economy -- fell at the fastest rate in three years. It was the second straight month of decline.
European stocks were mixed in afternoon trading. Britain's FTSE 100 slid 0.4%, but France's CAC 40 gained 0.3% and the DAX in Germany reversed earlier losses to edge higher 0.4%.
Asian markets closed mixed after the China manufacturing report and in reaction to the Fed meeting. The Shanghai Composite lost 1.4% while the Hang Seng in Hong Kong was down 1.3%. But Japan's Nikkei gained 0.8%.
Oil for July delivery fell 58 cents to $80.87 U.S. a barrel.
Gold futures for August delivery dropped $19.00 to $1,596.80 U.S. an ounce
