Canadian stocks may extend losses at open Thursday amid liquidity concerns after the U.S. Federal Reserve Chairman indicated a possible taper down of the stimulus program this year if the economy continues to improve. Sentiment was also impacted by manufacturing data out of China. The Asian markets plunged and the U.S. futures indicate a weak open.
Fed Chairman Ben Bernanke indicated that the $85 billion-a-month bond-buying program may end altogether by mid-2014 if the economy performs in line with Fed projections. The U.S. central bank played down the low inflation figures, but pledged to keep short-term interest rates at record lows until the jobless rate reaches 6.5 percent.
Elsewhere, China's manufacturing activity contracted at a faster pace in June, reducing the prospects of a promising economic recovery, preliminary results of a survey by Markit Economics and HSBC revealed. The flash manufacturing purchasing managers' index fell to 48.3 in June from 49.2 in May. The index is now at its lowest level in nine months.
U.S. stock futures were pointing to a sharply lower open.
On Wednesday, the S&P/TSX Composite Index snapped its two-session winning streak to shed 99.17 points or 0.80 percent to 12,268.29.
The price of crude oil was moving lower Thursday morning after official data revealed inventory build up. However during the session, prices might find support as the Federal Open Market Committee raised its outlook on the U.S. economic recovery. Crude for August lost $1.70 to $96.78 a barrel.
The price of gold dived near a three-year low Thursday morning after the US Federal Reserve indicated it would slow the pace of bond purchases later this year. Gold for August delivery, the most actively traded contract, lost $72.80 to $1,301.20 an ounce, levels not seen since September 2010.
In corporate news from Canada. TD Bank (TD.TO) announced that it received necessary approvals for its previously announced normal course issuer bid. The bank intends to repurchase up to 12 million of its common shares pursuant to its bid which will commence on June 21, 2013 and end on June 20, 2014
Entertainment technology company IMAX Corp. (IMX.TO) and CineStar Cinemas, Germany's largest exhibitor and a subsidiary of Amalgamated Holdings Ltd., Australia's leading entertainment and hospitality company, announced a revenue-sharing agreement for an IMAX theatre in Germany to be added to the landmark CineStar Sony Centre multiplex at Potsdamer Platz in the heart of Berlin.
Pharmaceutical company ProMetic Life Sciences Inc. (PLI.TO) announced that it has received a $4.8 million purchase order under its ongoing supply agreement with Octapharma, Swiss based, independent global plasma fractionation company that specializes in human proteins
In economic news from the U.S., the Labor Department said initial jobless claims climbed to 354,000, an increase of 18,000 from the previous week's revised figure of 336,000. Economists had expected jobless claims to edge up to 340,000 from the 334,000 originally reported for the previous week.
Elsewhere, euro zone business activity logged the smallest downturn since March last year, flash survey data from Markit Economics showed. The composite output index improved to 48.9 in June from 47.7 in May. The reading also exceeded consensus forecast of 48.1. Nonetheless, the sub-50 reading nevertheless rounded off another weak quarter.
Meanwhile, the Swiss National Bank decided to retain the currency ceiling at CHF 1.2 per euro and said it stands ready to enforce the franc cap, if necessary, by buying foreign currency in unlimited quantities. The target range for the three-month Libor was left unchanged at 0.0-0.25 percent. The decision was in line with economists' forecast.
German producer price inflation rose less than expected in May, data from the Federal Statistical Office showed. The producer price index rose 0.2 percent year-on-year in May, faster than a 0.1 percent increase in the previous month. Economists had forecast an increase of 0.3 percent.
Germany's manufacturing activity declined at a faster rate in June, defying economists' expectations that the downturn would ease, latest data showed. The seasonally adjusted purchasing managers' index for the manufacturing sector dropped to a two-month low of 48.7 in June from 49.4 in May, data from a survey by Markit Economics and BME revealed. Economists had forecast the index to rise to 49.9.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.