Canada's main stock index looked set to open lower on Thursday, hurt by falling commodity prices, as investors grew cautious about the outcome of a European Union summit beginning later in the day.
The S&P/TSX Composite Index gained 76.52 points to close Wednesday at 11,410.94. Canada stock futures traded down 0.5%
The Canadian dollar shed 0.3 of a cent to 97.23 cents U.S. early Thursday
Investors were also expected to focus on results from Research In Motion Ltd later in the session. The BlackBerry maker is expected to post an adjusted loss of eight cents a share in the three months to June 2, according to the average estimate of analysts.
Among other stocks to watch this morning, oil and gas producer Niko Resources Ltd reported a fourth-quarter loss and forecast a 23% decline in production for the next fiscal year as output from its D6 block off India's east coast fell.
On the economic slate, Statistics Canada reported this morning that average weekly earnings of non-farm payroll employees were $896.63 in April, up 1.0% from the previous month. On a year-over-year basis, earnings increased by 3.1%.
ON BAYSTREET
The TSX Venture Exchange inched up 2.59 points to 1,171.55. The Nasdaq Canada index soared 7.32 points to 359.76
ON WALLSTREET
U.S. stocks were also headed for a weak open Thursday as a key two-day summit in Europe gets underway.
Futures for the Dow Industrials fell 83 points, or 0.7%, to 12,470, about 30 minutes before the opening bell, while futures for the S&P 500 lost 6.7 points, or 0.5%, to 1,318.80. Futures for the tech-rich Nasdaq lost 10 points, or 0.4%, to 2,547.75
European leaders are under pressure to announce plans to backstop the debts of struggling nations, while also laying the groundwork for future growth. With so many similar summits having come and gone, however, investors aren't betting on any concrete solutions emerging.
Spain has been of particular concern, with its stratospheric borrowing costs threatening to drive it from private markets.
Italy may be in similar trouble. Borrowing costs have been steadily rising, and while the yield on the 10-year bond hasn't yet reached 7%, it now hovers above 6.2%. Early Thursday, the government auctioned €5.4 billion for five- and 10-year bonds pushed yields up slightly.
European stocks were down in morning trading. Britain's FTSE 100 shed 0.8%, while the DAX in Germany dropped 2.1% and France's CAC 40 fell 2%.
Asian markets ended mixed. The Shanghai Composite lost 1% and the Hang Seng in Hong Kong slid 0.8%, while Japan's Nikkei gained 1.7%.
Oil for August delivery slid 25 cents to $79.96 U.S. a barrel.
Gold futures for August delivery fell $9.90 to $1,568.50 U.S. an ounce.
