Canadian stocks may extend losses at open Thursday amid falling commodities and weak cues from the global equity markets. While most Asian markets ended lower overnight after the U.S, Federal Reserve failed to announce any new monetary stimulus measures after its 2-day meeting concluded yesterday, European shares were trading mixed.
U.S. stock futures were pointing to a lower open.
On Wednesday, the S&P/TSX Composite Index snapped its three-session winning streak to shed 29.02 points or 0.25 percent to11,759.34.
The price of crude oil was moving lower Thursday morning as traders were concerned over demand growth after the U.S. Federal Reserve disappointed markets by failing to announce new monetary stimulus measures. Meanwhile, China's factory output shrank for an eighth straight month in June, according to a survey indicating the country's economic trough may extend well into the third quarter. Crude for August was down $1.00 to $80.45 a barrel
The price of gold was extending losses for a fourth straight session Thursday morning as the U.S. dollar was trading firm after the FOMC yesterday failed to announce the much awaited monetary stimulus measures to support the sagging economy. Gold for August lost $27.40 to $1,588.40 an ounce.
In corporate news from Canada, Bombardier Aerospace, a division of Bombardier Inc. (BBD_A.TO, BBD_B.TO), announced that a wholly owned subsidiary of Nordic Aviation Capital A/S of Billund, Denmark has signed a firm purchase agreement for twelve CRJ1000 NextGen aircraft.
Oil and gas company Imperial Oil Ltd. (IMO.TO)received final acceptance from the Toronto Stock Exchange for a new normal course issuer bid to continue its existing share repurchase program facility that will expire on June 24, 2012. The new program enables the company to repurchase up to five percent of its 847.6 million outstanding common shares as of June 15, 2012, or a maximum of 42.38 million shares during the next 12 months.
Natural gas transportation company TransCanada Corp. (TRP.TO) announced that it does not endorse an unsolicited mini-tender offer by TRC Capital Corp. to buy up to 2.0 million shares of TransCanada at a price of C$40.50 per share.
In economics news, Statistics Canada said retail sales declined 0.5 percent to $38.9 billion in April, reversing gains in March. Sales at motor vehicle and parts dealers fell 1.2 percent in April, more than offsetting the rise in March, it added.
From the U.S., the Labor Department estimated that for the week ended June 16, new unemployment claims came in at a seasonally adjusted level of 387,000, a decrease of 2,000 from the previous week's revised level of 389,000. The decrease comes in part because revised figures put the previous week's level of new unemployment claims up from the 386,000 initially reported. As a result, the current level of 387,000 is higher than the 383,000 predicted by most economists.
Meanwhile, the euro zone suffered another steep fall in private sector activity in June, which was the steepest in three years, as the fallout from the debt crisis engulfing the single-currency bloc continued to hit production and new orders. The Composite Output Index, which measures the performance of both manufacturing and service sectors, remained unchanged at 46, the lowest reading since June 2009, a survey by Markit Economics revealed. Economists had expected a decline to 45.5.
Meanwhile, U.K. retail sales recovered at a faster than expected pace in May after easing in April, the Office for National Statistics said. Retail sales volume, including automotive fuel, rose 1.4 percent from the prior month, when it was down 2.4 percent. The increase was bigger than the expected growth of 1.2 percent.
by RTT Staff Writer
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