Markets in Toronto looked set to open higher on Thursday, on expectations that Spain would be pressured to seek a sovereign bailout after S&P downgraded it to just one notch above junk.
The S&P/TSX composite index closed Wednesday down 61.15 points, to 12,212.42. Futures kicked up 0.3% this morning.
The Canadian dollar strengthened 0.39 cents Thursday morning to 102.27 cents U.S.
Among stocks to watch, a senior official for Enbridge Inc. said the company needs to do a better job of communicating to most British Columbians and other Canadians the merits of its contentious Northern Gateway oil pipeline planned for the westernmost province
Oil and gas technology whiz Gasfrac Energy Services Inc. says it expected its third-quarter revenue to be around the $40-million mark, far below analysts' expectations, and said it had cut jobs to reduce costs. Analysts had expected revenue of $58 million.
In the economic docket, Statistics Canada reported this morning that our merchandise imports fell 3.1% and exports edged down 0.1% in August, meaning Canada's trade deficit with the world narrowed to $1.3 billion in August from $2.5 billion in July.
Elsewhere, the New Housing Price Index rose 0.2% in August, after a July boost of 0.1%.
ON BAYSTREET
The TSX Venture Exchange jettisoned 25.66 points Wednesday to 1,302.15
ON WALLSTREET
For a change, stock futures turned higher Thursday following an unexpected drop in the number of people filing first time unemployment claims.
Futures for the Dow Jones Industrials jumped 53 points, or 0.4%, to 13,321, about 30 minutes before the opening bell. Futures for the S&P 500 added 7.7 points, or 0.5%, to 1,434, and for the Nasdaq, futures increased 16.75 points, or 0.6%, to 2,739.50
A flurry of economic reports came in better than expected. For example, the number of people filing for jobless claims fell 30,000 to 339,000 last week, according to the U.S. Labor Department.
What’s more, the U.S. Census Bureau said the trade deficit fell slightly to $44.2 billion U.S. from July to August. The U.S. Labor Department also reported import prices rose 1.1% in September while export prices rose 0.8%.
Adding to the morning's positive trading was a report that Japan's Softbank is negotiating to acquire telecom operator Sprint Nextel.
European stocks started off lower, but gathered strength as the morning progressed. Britain's FTSE 100 added 0.4%, the DAX in Germany rose 0.7% and France's CAC 40 edged higher 0.3%.
Meanwhile in Asia, South Korea's central bank lowered interest rates for the second time this year. Even so, markets ended the day mixed. The Shanghai Composite slid 0.8% and Japan's Nikkei 225 shed 0.6%, while the Hang Seng in Hong Kong ticked up 0.4%.
Oil for November delivery added 87 cents to $92.12 U.S. a barrel.
Gold futures for December delivery rose $5.90 to $1,771.00 U.S. an ounce.
