The Toronto Stock Exchange appeared set to take back some gains at the open Thursday as commodity prices gained ground on expectations China may move to stimulate its economy.
The S&P/TSX composite index fell 24.32 points to end Wednesday at 12,232.86. Futures traded up 0.6%.
The Canadian dollar acquired 0.18 cents Thursday morning to 101.64 cents U.S.
In Canadian corporate news, a glimpse into the state of struggling BlackBerry maker Research In Motion will be revealed when the company releases its second-quarter financial results after markets close.
China's CNOOC Ltd believes it is poised to win Canada's go-ahead for the $15.1-billion purchase of oil producer Nexen Inc, after talks with provincial leaders boosted its confidence that Canada values China as an investor in its huge oil sands sector and as a future energy customer.
Environmental groups have launched legal action against the Canadian government to force it to protect endangered species along the route of Enbridge Inc.’s proposed $6-billion Northern Gateway crude oil pipeline and in West Coast waters where oil tankers would pick up the Gateway crude.
ON BAYSTREET
The TSX Venture Exchange faded 6.35 points Wednesday to 1,306.86
ON WALLSTREET
U.S. stock futures were modestly higher Thursday, following gains in European and Asian markets, which rose on hopes that China's central bank will engage in further monetary policy easing.
Futures for the Dow Jones Industrials zoomed 65 points, or 0.5%, to 13,410, about 30 minutes before the opening bell. Futures for the S&P 500 climbed 6.4 points, or 0.5%, to 1,433.30, and for the Nasdaq, futures gained 6.75 points, or 0.2%, to 2,781.
The U.S. government's weekly report on initial jobless claims is due at this morning. Claims are expected to have edged down to 379,000 in the week ended Sept. 22, from 382,000 the previous week.
A third reading on the U.S. second-quarter gross domestic product is also due. Economists surveyed by Briefing.com expect economic growth to come in at 1.7%, in line with the previous report.
Also due before the open, the Census Bureau will release a report on durable goods orders, with economists anticipating a 5% drop in August, following a 4.1% increase in July.
Later in the morning, a report on pending home sales is due from the National Association of Realtors. Economists predict sales to have ticked up 0.5% in August, following a 2.4% jump in the previous month.
The People's Bank of China has injected a net ¥365 billion ($58 billion U.S.) into money markets this week, just as China's marquee stock index -- the Shanghai Composite -- reached a three-year low.
Talk that the central bank will take further easing measures next week boosted Asian markets. The Shanghai Composite ended up 2.6%. The Hang Seng in Hong Kong jumped 1.1%, and Japan's Nikkei ticked up 0.5%.
It's the latest sign that central banks are taking measures to keep a global slowdown at bay. Gains in European stocks were pared back after a disappointing report on eurozone sentiment, which showed a surprise decline in September. Economists had expected the European Commission's monthly index to be unchanged.
Britain's FTSE 100 added 0.3%, the DAX in Germany gained 0.5% and France's CAC 40 rose 0.7%.
Investors are waiting for the Spanish government to release its 2013 budget, which was due out this morning. And Friday brings auditors' results of bank stress tests, which could give investors a better idea of just how deep Spain's banking troubles run.
Oil for November delivery added 28 cents to $90.26 U.S. a barrel.
Gold futures for December delivery rose $5.10 to $1,758.70 U.S. an ounce.
