Canada's main stock index looked set to open higher on Thursday as Cyprus banks reopened after two weeks with tight restrictions on withdrawals, though volatile moves in shares of BlackBerry were expected to have a heavy influence.
The S&P/TSX index finished lower by 6.80 points Wednesday to 12,699.58
The Canadian dollar notched ahead 0.09 cents to 98.47 cents U.S. early Thursday.
BlackBerry shares swung between positive and negative territory in pre-market trading after it revealed an unexpected quarterly profit on demand for the new touchscreen device that holds the key to its successful turnaround. But its revenue remained far below levels for last year at this time.
Suncor Energy Inc said on Wednesday it scrapped its long-delayed and partially built Voyageur oil sands upgrading plant in northern Alberta as competition in the North Dakota Bakken region cut potential returns from the multi-billion-dollar venture.
The National Energy Board agreed to cut fixed tolls on TransCanada Corporation’s mainline, a cross-country natural gas pipeline network, which the regulator says will help keep the system competitive and profitable despite increasing supplies from U.S. shale gas producers.
On the economic calendar, Statistics Canada reported that the economy grew 0.2% in January, after a 0.2% decrease in December. Manufacturing was the largest contributor to the January growth in real gross domestic product.
Elsewhere, the agency reported that its Industrial Product Price Index rose 1.4% in February, mostly due to higher petroleum and coal prices. Its Raw Materials Price Index hiked 2.2% as a result of higher prices for crude oil.
ON BAYSTREET
The TSX Venture Exchange gained 1.76 points Wednesday to 1,097.79
ON WALLSTREET
Investors will be monitoring the ongoing crisis in Cyprus on Thursday while also awaiting new economic data in the United States.
Futures for the Dow Industrials gained 28 points, or 0.2%, to 14,473. Futures for the S&P 500 took on 1.5 points, or 0.1%, to 1,558.30, and futures for the NASDAQ gained seven points, or 0.3%, to 2,808.
The Dow has climbed nearly 11% this year and the S&P 500 has risen nearly 10%. The S&P 500 is poised to once again challenge the all-time high that it set in October 2007.
Volume in pre-market trading was relatively low ahead of Good Friday, when markets will be closed in the United States and most of Europe.
In corporate news, struggling Blackberry maker Blackberry reported a surprise profit before the opening bell, but sales missed forecasts. The stock initially surged in pre-market trading on the news but lost that momentum and was down 1.5% with about an hour and a half before the market was set to open.
The government will release its weekly data on initial jobless claims Thursday, as well as its final reading on fourth-quarter GDP.
Jobless claims are expected to total 335,000 for the week ended March 23, according to a consensus of economists complied by Briefing.com. That would be a slight decline from 336,000 the prior week. The final estimate for fourth-quarter GDP is for an annual increase of 0.3%. The prior reading showed the economy grew at a 0.1% pace.
But in what could be a chaotic scene, banks in Cyprus reopened Thursday morning after being closed since March 16. The island nation plans to limit the amount of money that depositors can withdraw in an attempt to prevent bank runs.
Cyprus 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 higher in morning trading, while Asian markets ended lower. The FTSE 100 in London, the DAX in Frankfurt and the CAC 40 in Paris all made gains. The Nikkei 225 closed lower by 1.3%, the Hang Seng dropped 0.9% and the Shanghai Composite was off 2.8%
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.
