Canada's main stock index, with its heavy weighting of resource issues, looked set to open lower on Wednesday as commodity prices fell and investors stayed on the sidelines awaiting clues from major central banks on economic stimulus.
The S&P/TSX Composite index moved up 15.28 points to end Tuesday’s session at 11,853.61. Stock futures were down slightly.
The Canadian dollar tacked on 0.07 cents Wednesday morning to 100.87 cents U.S.
Retailer Sears Canada Inc reported a wider second-quarter loss on a drop in sales at its outdoor power equipment category and lower sales during weekends.
China-based specialty fertilizer maker Migao Corp., which trades in Toronto, reported a quarterly loss as revenue fell by two-thirds on further weakness in the hydrochloric acid market.
Moreover, Argonaut Gold Inc.'s quarterly profit more than doubled on increased production and higher gold prices.
ON BAYSTREET
The TSX Venture Exchange stepped back 0.36 points Tuesday to 1,195.01. The Nasdaq Canada fell 4.01 points to 344.25.
ON WALLSTREET
U.S. stocks were set to open lower Wednesday, as investors reacted to disappointing economic reports.
Futures for the Dow Jones Industrials dipped 19 points, or 0.1%, to 13,114, about 30 minutes before the opening bell.
Futures for the S&P 500 fell back 2.9 points, or 0.2%, to 1,398.70, and for the Nasdaq, futures staggered 2.25 points, or 0.1%, to 2,724.50
Investors continue to watch for more signs of a slowdown in the economy, with hopes that the data could convince the Federal Reserve and central banks around the globe to step in with further stimulus measures.
At 9:15 a.m. ET, the U.S. Federal Reserve will release data on industrial production for July, which is expected to have increased by 0.6%.
After the opening bell, the National Association of Home Builders will release the August edition of its Housing Market Index, which is based on a survey asking NAHB members to rate the general economy and housing market conditions. The index is expected to stand at 35, unchanged from last month.
European stocks fell during Wednesday's session. Britain's FTSE 100 shed 0.4%, the DAX in Germany lost 0.6% and France's CAC 40 dipped 0.3%.
The unemployment rate in Britain fell by 0.2 percentage points in the second quarter to 8%, according to the Office for National Statistics. The data came in better than expected, with the jobless rate at its lowest level in nearly a year.
Asian markets closed lower. The Shanghai Composite dropped 1.1%, the Hang Seng in Hong Kong stumbled 1.2%, and Japan's Nikkei shaved off 0.1%.
Oil for September delivery lost 30 cents to $93.13 U.S. a barrel.
Gold futures for December delivery fell $7.10 to $1,594.30 U.S. an ounce.
