Canadian stocks may struggle to move higher at open Thursday as traders were disappointed after the Federal Reserve yesterday refrained from any new stimulus measures. Meanwhile, commodities were ticking lower after the Bank of England and European Central Bank left their key rates unchanged today.
U.S. stock futures were pointing to a lower open.
On Wednesday, the S&P/TSX Composite Index extended losses for a third session, dipping 46.18 points or 0.40 percent to 11,618.53.
The price of crude oil was firm near $90 Thursday morning as demand worries eased amid falling inventories. Wednesday during trading hours, the EIA revealed that U.S. crude oil stocks dived 6.50 million barrels and gasoline stocks shed 2.20 million barrels in the weekended July 27. Crude for September edged down $0.72 to $88.19 a barrel.
The price of gold was ticking lower, with gold for December delivery shedding $5.20 to $1,599.90 an ounce.
In corporate news from Canada, base-metals miner First Quantum Minerals Ltd. (FM.TO) reported a lower second-quarter net earnings of $142.0 million or $0.30 per share compared to $155.3 million or $0.33 per share in the same quarter last year.
International gold miner Centerra Gold (CG.TO) reported slipped into the red in second-quarter, reporting net loss of $54.6 million or $0.23 per share compared to a net income of $71.1 million or $0.30 per share in the prior year quarter. Analysts were expecting the company to report a loss of $0.14 per share this quarter.
Financial services company Home Capital Group (HCG.TO) reported improved second quarter net income of C$53.2 million or C$1.54 per share compared to C$48.2 million or C$1.38 per share for the year-ago quarter. Excluding a tax adjustment, net income for the latest quarter was C$55.2 million or C$1.60 per share. Analysts were expecting the company to report a earn C$1.53 per share this quarter.
Software solutions provider Constellation Software Inc. (CSU.TO) reported second quarter net income of $17.59 million or $0.83 per share down from $55.99 million or $2.64 per share in the year-ago period. However excluding items, adjusted net income rose to $36.16 million or $1.71 per share from $33.51 million or $1.58 per share in the prior-year quarter.
Insurance services provider Great-West Lifeco Inc. (GWO.TO) reported second quarter net profit of C$491 million or C$0.517 per share, lower than C$526 million or C$0.553 per share last year. Analysts were expecting the company to report a earn C$0.48 per share this quarter.
Communications and consumer electronics company Wi-Lan Inc. (WIN.TO) reported second-quarter GAAP net loss of $0.1 million, or breakeven per share, compared to GAAP earnings of $10.3 million, or $0.08 per share in the same period last year. Adjusted earnings were $10.1 million or $0.08 per share compared to $20.8 million or $0.17 per share in the comparative period. Analysts were expecting the company to report earnings of $0.08 per share.
Oil transporter Enbridge Inc. (ENB.TO) posted a steep decline in its second-quarter earnings at C$11 million or C$0.01 per share compared to C$302 million or C$0.40 per share last year. However, adjusted earnings per share were C$0.36 up from C$0.34 in the same quarter a year ago. Analysts were expecting the company to report earnings of $0.38 per share.
International pharmaceuticals company Valeant Pharmaceuticals International, Inc. (VRX.TO) slipped into the red in second quarter, reporting net loss of $21.6 million or $0.07 per share for the quarter compared to a profit of $56.36 million or $0.17 per share last year.
In economic news from the U.S, the Labor Department said that initial jobless claims crept up to 365,000 from the previous week's revised figure of 357,000. Economists had expected jobless claims to climb to 370,000 from the 353,000 originally reported for the previous week.
Elsewhere, euro zone industrial producer prices fell 0.5 percent month-on-month in June, the same rate of decline as seen in the prior month, Eurostat reported. The rate was marginally bigger than the expected decrease of 0.4 percent.
The Bank of England today maintained the asset purchase programme at GBP 375 billion and the key interest rate at a historic low of 0.50 percent, as widely expected. Meanwhile, the European Central Bank left its benchmark interest rate at its record low of 0.75 percent.
by RTT Staff Writer
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