Markets in Toronto looked set to open lower on Thursday, driven by uncertainty over U.S. budget negotiations and an escalation of violence in the Middle East.
The S&P/TSX Composite Index plunged 204.87 points, or 1.7%, to end Wednesday at 11,929.79. Futures were down 0.4% Thursday morning.
The Canadian dollar gained 0.13 cents to 99.78 cents U.S. Thursday morning.
Auto parts maker Linamar Corp. reported a 57% increase in quarterly earnings on Wednesday as stronger demand in the U.S. offset weakness in Europe.
Chinese fertilizer maker Migao Corp.reported a second-quarter loss due to weaker demand for its products and lower selling prices.
On the economic calendar, figures released this morning by Statistics Canada showed manufacturing sales advanced 0.4% to $49.8 billion in September. The gain reflected higher production in the aerospace product and parts industry and increased sales of primary metals.
The nation’s number crunchers said sales hiked in eight of 21 industries, representing just under half of Canadian manufacturing. They added sales of durable goods jumped 1.1% to $25.8 billion, while non-durable goods sales decreased 0.4% to $24.0 billion.
ON BAYSTREET
The TSX Venture Exchange swooned 28.20 points to 1,258.69
ON WALLSTREET
U.S. stock futures lost traction, signaling a lower open Thursday, ahead of a busy day packed with key economic reports, speeches from Federal Reserve officials and events overseas.
The Dow Jones Industrials futures descended 43 points, or 0.3%, to 12,501 while S&P 500 futures fell 2.3 points, or 0.2%, to 1,350.70, and futures for the tech-rich Nasdaq gained 1.50 points, or 0.1%, to 2,531.
President Obama met with CEOs Wednesday to discuss the fiscal cliff and is scheduled to meet with Congressional leaders Friday.
The report on initial jobless claims, due out this morning, is expected to show 388,000 people filed for their first week of unemployment benefits last week. But the data has recently been distorted by Superstorm Sandy.
Meanwhile, the Consumer Price Index is expected to show inflation remained tame in October, ticking up 0.1% during the month.
The Federal Reserve Bank of Philadelphia will release its monthly manufacturing survey at 10 a.m. ET.
Around 1:20 p.m. ET, Federal Reserve Chairman Ben Bernanke is due to deliver remarks on the housing market at an event in Atlanta. Regional Fed presidents Jeffrey Lacker of Richmond, Charles Evans of Chicago, Richard Fisher of Dallas and Charles Plosser of Philadelphia are also scheduled to give speeches Thursday.
Early Thursday, investors were already mulling over global headlines. China's ruling Communist Party named its next seven leaders, the euro-zone officially entered a double-dip recession and Israel launched a series of blistering air strikes Wednesday on what it said were terrorist targets in Gaza.
European stocks were lower Thursday morning. Britain's FTSE 100 shed 0.5%, the DAX in Germany lost 0.8% and France's CAC 40 fell 0.2%.
Asian markets ended mixed. The Shanghai Composite dropped 1.2% and the Hang Seng in Hong Kong dropped 1.5%%, while Japan's Nikkei 225 surged 1.9%.
Oil for December delivery fell five cents to $86.27 U.S. a barrel.
Gold futures for December delivery fell $10 to $1,720.10 U.S. an ounce.
