Stock markets in Canada’s biggest centre were set to open higher on Wednesday, reversing losses in the previous session, even as commodities dropped on worries about the Chinese credit market.
The S&P/TSX composite index fell 34.83 points to conclude business at 14,267.43, with futures up this morning by 0.2%.
The Canadian dollar tumbled 0.34 cents at 89.71 cents U.S. early Wednesday
A fall in copper to near four-year lows compounded increasing concern about China's economic slowdown, sending a wave of unease through world financial markets.
CIBC raised the target price on Detour Gold to $12.50 from $10.50, saying the company has the financial strength to support ongoing ramp-up activities at Detour Lake and reduce debt.
CIBC also raised the target price on DeeThree Exploration to $12.00 from $11.50, based on the company's 95% increase in reserves and a strong recycle ratio.
However, the bank cut the target price on Transcontinental Inc. to $16 from $17, citing modest first-quarter results.
ON BAYSTREET
The TSX Venture Exchange remained positive 0.46 points Tuesday to 1,043.31
ON WALLSTREET
Concerns about the Chinese economy hit global stocks Wednesday and could make for a weak start on U.S. markets.
Ahead of the opening bell, futures for the Dow Jones Industrials doffed 38 points, or 0.2%, to 16,298. Futures for the S&P 500 were down 4.2 points, or 0.2%, to 1,861, and futures for the NASDAQ lost 12.75 points, or 0.4%, at 3,675.75
Plug Power and rival fuel cell stocks Ballard Power System and FuelCell Energy were all down dramatically in pre-market trading. The companies are considered highly speculative and have enjoyed a massive run as of late.
Economically speaking, U.S. Treasury Secretary Jack Lew is set to testify before the Senate budget committee at 10 a.m. ET about the President's 2015 Budget.
China concerns have been edging to the forefront of investors' minds since February data showed exports tumbled 18% compared to last year.
That followed news that the country had experienced its first-ever corporate debt default. Some analysts believe more defaults could be in the pipeline.
In recent weeks, the Chinese central bank has also loosened its grip on the currency, allowing it to fluctuate more than usual, shaking confidence in what has been seen as a safe one-way bet.
Nearly all Asian stock markets closed in the red Wednesday, with Japan's Nikkei 225 taking a 2.6% hit. The Hang Seng in Hong Kong dropped by 1.7% and the Shanghai Composite also posted a small decline.
European markets were also taking note, with all the major indexes pushing down in morning trading. The CAC 40 index in Paris dropped 1.6%.
Oil prices faded $1.54 to $98.49 U.S. a barrel
Gold prices hiked $13.70 to $1,360.40 U.S. an ounce.
