Canada's main stock index looked set to open lower as Cyprus's bailout woes, weak euro-zone economic data and soft demand at an Italian debt auction weighed on sentiment.
The S&P/TSX index was up 25.67 points to end trading Tuesday at 12,706.38, with morning futures down 0.6%
The Canadian dollar eked up 0.07 cents to 98.46 cents U.S. early Wednesday.
Air Canada said a preliminary estimate of its pension solvency deficit has dropped to $3.7 billion from $4.2 billion a year ago, reflecting a better-than-expected 14% return on plan assets.
Agrium Inc. won another ringing endorsement just ahead of a crucial shareholder vote after influential advisory firm Glass Lewis on Tuesday advised its clients to back all 12 of Agrium's board nominees over a slate nominated by dissident investor Jana Partners.
Huntingdon Capital Corp. said it increased its offer for all of KEYReit's units to match Plazacorp Retail Properties' $119-million bid for the company.
On the economic calendar, Statistics Canada reported that consumer prices rose 1.2% in the 12 months to February, following a 0.5% advance in January, mostly due to transportation prices, which rose 2.0% on a year-over-year basis in February, after falling 0.5% in January.
ON BAYSTREET
The TSX Venture Exchange faded 7.32 points Tuesday to 1,096.03
ON WALLSTREET
Investors head into Wednesday with the S&P 500 near an all-time high and the Dow at a record, though lingering concerns over Cyprus' financial stability could keep the markets from hitting a new peak.
Futures for the Dow Industrials tumbled 64 points, or 0.4%, to 14,414. Futures for the S&P 500 fell 5.6 points, or 0.4%, to 1,551.60, and futures for the NASDAQ tailed off 13.75 points, or 0.5%, to 2,786.
U.S. stock futures were slightly lower ahead of the opening bell on Wednesday, reversing their earlier gains. Trading volume on Wall Street is likely to be thin amid the Passover holiday and ahead of Good Friday and Easter.
Few major corporate or economic reports are due Wednesday, though at 10 a.m. ET, the National Association of Realtors will release data on pending home sales.
Cyprus' banks will remain closed until Thursday to give regulators time to guard against a run on deposits. Some form of capital controls will be applied when the banks eventually reopen. Details are due to be published later Wednesday.
The island nation agreed early Monday to raise billions of euros from big depositors at the Bank of Cyprus and Popular Bank of Cyprus, and to shrink its banking sector in return for a €10-billion European Union bailout.
European markets were narrowly weaker in morning trading on continuing uncertainty about the impact of the Cyprus crisis on the wider euro-zone.
Asian markets ended higher. The Shanghai Composite and Nikkei 225 added 0.2%, while the Hang Seng advanced 0.7%.
Oil prices took on 46 cents to $95.95 U.S. a barrel
Gold prices dropped two dollars an ounce to $1,596.60 U.S.
