Canadian stocks are poised for a lower open Thursday amid falling commodities and weak cues from the global equity markets. Global stocks suffered losses after data revealed contraction in Chinese manufacturing activity, with European shares lingering in the red amid downbeat reading on euro zone Purchasing Managers Index.
U.S. stock futures were pointing to a lower open.
On Wednesday, the S&P/TSX Composite Index edged up 13.45 points or 0.11 percent to 12.436.16
The price of crude oil was extending losses Thursday morning as trader fret over demand growth after data revealed contraction in Chinese manufacturing activity. The HSBC Flash China PMI ticked higher in September from a reading of 47.8 in August. However, the HSBC Flash China Manufacturing Output Index hit a 10-month low of 47. Crude for November was down $0.21 to $92.09 a barrel.
The price of gold was leveling off from its seven-month high Thursday morning as traders book profits to cash in on recent gains. Gold for December shed $4.80 to $1,766.90 an ounce.
In corporate news from Canada, miner B2Gold Corp. (BTO.TO) said it would acquire Australia's CGA Mining Ltd. (CGA.TO) in an all-stock deal valued at about C$3.18 per share or a total of about C$1.1 billion or $1.13 billion.
In economic news from the U.S., the Labor Department said that jobless claims edged down to 382,000 in the week ended September 15 from the previous week's revised figure of 385,000. Economists had expected jobless claims to drop to 373,000 from the 382,000 originally reported for the previous week.
Elsewhere, activity in euro zone's manufacturing sector decreased at a slower pace in September, data released by Markit Economics showed. The seasonally adjusted purchasing managers' index (PMI) for the manufacturing sector rose to a six-month high of 46 in September from 45.1 in August, but remained below the no-change 50 mark that separates growth from contraction. Economists expected to index to rise to 45.5.
Separately, the Markit Economics said that Germany's manufacturing sector contracted further in September, though at a slower rate. The seasonally adjusted purchasing managers index (PMI) for the manufacturing sector rose to 47.3 in September from 44.7 in August, and hit the highest level in six months. The latest contraction was the least marked since the current period of contraction started in April.
by RTT Staff Writer
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