Canadian stocks are poised for a lower open Thursday as commodities faltered after the Federal Reserve gave no hint of any further quantitative easing in the near term. Most Asian markers ended lower on a disappointing jobs report released by Australia and the Bank of Korea's unexpected rate cut. European stocks were lingering in the red amid continued worries over the region's debt situation.
U.S. stock futures were pointing to a lower open.
On Wednesday, the S&P/TSX Composite Index snapped its four-session losing streak to add 32.42 points or 0.28 percent to 11,544.64.
The price of crude oil was moving lower Thursday morning after the IEA today said global economic slowdown could hurt oil prices. The International Energy Agency, in its monthly Oil Market Report released earlier today, nudged up its 2013 oil demand growth forecast by 1.0 million barrels per day (mbd) to 90.90 mbd as global oil supply capacity seen growing slightly ahead of expected moderate demand growth. Crude for August shed $1.19 to $84.62 a barrel.
The price of gold was moving lower as the Federal Reserve gave no hint of any further quantitative easing in the near term. Gold for August lost $17.80 to $1,557.90 an ounce.
In corporate news from Canada, Bombardier Inc. (BBD_A.TO, BBD_B.TO) said its aerospace division got firm order for six Q400 NextGen airliners from Chorus Aviation Inc. (CHR_A.TO) for about $189 million.
Media company Corus Entertainment Inc. (CJR_B.TO) posted improved third quarter profit of C$44.95 million or C$0.51 per share compared to last year's C$43.48 million or C$0.49 per share. Analysts were expecting the company to report earnings of C$0.49 per share this quarter.
According to media reports, stock exchange operator TMX Group Inc. (X.TO) is in talks to acquire U.S. exchange group Direct Edge Holdings LLC.
Telecommunications company Cogeco Cable Inc. (CCA.TO) swung to profit in third quarter, reporting net income of C$53.16 million or C$1.09 per share, as against a loss of C$181.22 million or C$3.73 per share last year.
Broadcasting and wireless communications equipment manufacturing company DragonWave Inc. (DWI.TO) reported a wider first quarter loss of $12.6 million or $0.35 per share compared to $9.9 million or $0.28 per share in the same period last year. Analysts were expecting the company to report a loss of $0.28 per share for the quarter. Further, the company guides revenues in the range of $35 million to $45 million, much lower than the consensus revenues of $51.10 million for the second quarter.
Mineral exploration company Redzone Resources Ltd. (REZ.TO) reported a fourth-quarter net loss of $0.3 million, wider than the net loss of $0.2 million in the comparable quarter last year.
Building material dealer Jewett-Cameron Trading Co. Ltd. (JCT.TO) reported a third-quarter profit of $937,000 or $0.59 per share, up from $604,000 or $0.30 per share in the prior-year quarter.
Biotechnology company Thallion Pharmaceuticals (TLN.TO) reported a second-quarter net loss of $0.7 million, narrower than the net loss of $0.8 million in the comparable quarter last year. Yesterday, the stock plunged nearly 40 percent after the Canadian stock exchange put the shares under review with respect to meeting the continued listing requirements.
In economic news, Statistics Canada said its New Housing Price Index (NHPI) continued to move up, rising 0.3 percent in May, following a 0.2 percent increase in April. Year over year, the NHPI was up 2.4 percent in May, following a 2.5 percent increase the previous month. The metropolitan regions of Toronto and Oshawa, and Calgary were the top contributors to the increase, partially offset by weakness n Victoria.
From the U.S., a report from the Labor Department showed that jobless claims fell to 350,000 from the previous week's revised figure of 376,000. The drop surprised economists, who had expected jobless claims to edge up to 375,000 from the 374,000 originally reported for the previous week.
Elsewhere, euro zone industrial sector output bounced back unexpectedly in May. Industrial production rose 0.6 percent month-on-month in May, following a 1.1 percent decrease in April. The outcome was better than economists' expectations for a flat reading.
Elsewhere, wholesale price inflation in Germany eased to 1.1 percent in June from 1.7 percent in May, the Federal Statistical Office said. During the month, wholesale prices of metal and metal ores as well as semi-finished products fell 5.1 percent annually.
by RTT Staff Writer
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