Canada's main stock index looked set to open lower, as investors look ahead to negotiations on the U.S. debt limit and spending cuts, halting the gains that followed a deal to avoid sharp tax hikes.
The S&P/TSX composite index gained 107.24 points to close the first session of 2013 at 12,540.77. Futures subsided 0.1% Wednesday.
The Canadian dollar inched up 0.06 cents to 101.53 cents U.S. Thursday morning
Imperial Oil Ltd's Kearl oil sands project in northern Alberta could start commercial production in the coming weeks after a previous target was delayed from the end of December.
RBC raised the target price on Canadian Energy Services to $13 from $12 as the company announced the acquisition of Mega Fluids Mid-Continent LLC and growth prospect in North America.
ON BAYSTREET
The TSX Venture Exchange prospered 18.54 points Thursday to 1,239.84.
ON WALLSTREET
U.S. stocks surged Wednesday following the passage of a fiscal cliff deal in Washington.
But the prospect of more cliff-edge wrangling over the U.S. budget in the weeks to come may leave some investors nursing a hangover.
Futures for the Dow Industrials dropped 20 points, or 0.2%, to 13,311. Futures for the S&P 500 backtracked 1.3 points, or 0.1%, to 1,455.80, and futures for the tech-rich Nasdaq fell 2.75 points, or 0.1%, to 2,736.
Bank stocks, which were among the biggest gainers a day earlier, fell in premarket trading. JPMorgan Chase, Citigroup and Bank of America were all lower two hours before the open.
Aside from keeping tabs on D.C. lawmakers, investors will get a fresh look at the labor market, with the government's weekly report on initial jobless claims and the monthly report on private-sector jobs from payroll processor ADP.
U.S. private sector added 215,000 jobs in December, according to the latest ADP report. And the government reported first-time jobless claims rose 10,000 to 372,000 in the latest week.
The two jobs reports serve as a prelude to the government's closely watched monthly jobs report, due Friday morning. Economists surveyed by Briefing.com are expecting the report will show job growth continued at a modest pace in December, with employers adding 150,000 jobs.
In corporate news, Family Dollar shares fell 8% after the discount retailer reported earnings that missed forecasts and issued a weak outlook.
Shares of Gap rose 4.4% after the retailer reported stronger-than-expected same store sales and announced a new $1-billion U.S. stock buyback.
However, Limited shares slid 4% after the Victoria's Secret owner's same store sales fell short of forecasts. And Macy's slid into the red on a weak sales outlook.
European markets retreated slightly in early trading after posting gains of 2% Wednesday, while Asian markets ended higher. Hong Kong's Hang Seng advanced 0.4% while the Australia ASX All Ordinaries index added 0.8%. Markets in Tokyo and Shanghai were
closed for an extended New Year's holiday.
Oil prices eased 29 cents to $92.83 cents U.S. a barrel
Gold prices gave back $10.20 an ounce to $1,678.40 U.S.
