Early signals are somewhat positive on Bay Street Thursday morning as investors flocked to the relative safety of oil and precious metals after the recent meltdown in the financial market. Rising commodity prices could give beaten down resource producers a nice boost, while gold stocks look to extend their dramatic gains from the previous session after the price of bullion continued to surge toward $900. The S&P/TSX Composite Index plunged 349.40 points to 11,877.69 on Wednesday, with the tech sector turning in its worst performance in recent memory after Nortel Networks issued a gloomy forecast, signaling that consumers are tightening their wallets amid deteriorating economic conditions. The main index finished at its lowest level in nearly two years.
Energy stocks may rebound on Thursday, with the price of oil soaring above $100, having jumped more than $10 from a multi-month low set earlier this week. Base metal stocks may also see some buying interests, but concerns about future demand may limit the upside for copper and aluminum producers.
US stock futures are pointing to a slightly higher open on Wall Street after after a number of central banks came together in attempting to stabilize the financial system by adding billions in cash.
The Federal Reserve approved a $180 billion expansion of its swap lines, with the facility with the European Central Bank increased by $55 billion and the Swiss National Bank by $15 billion. Additionally, the Fed has authorized new facilities with the Bank of Japan, the Bank of England and the Bank of Canada.
Federal banks decided to pump more money into the money markets after a wild week that has seen the credit crisis claim a number of victims, including venerable brokerage Lehman Brothers (LEH), which declared bankruptcy on Monday. Bank of America Corp. (BAC) bought Merrill Lynch (MER) and insurer American International Group (AIG) received an $85 billion government loan, all in a span of two days.
The focus will remain on financials, with news coming in at a rapid pace Thursday morning.
British bank Lloyds TSB Group Plc (LYG) said it agreed to buy troubled mortgage lender HBOS Plc (HBOS.L) for 12.2 billion pounds, or $22 billion, to create a financial giant that will hold nearly 28% of Britain's mortgage market.
Meanwhile, reports surfaced indicating that Washington Mutual (WM) has stepped up efforts to raise more capital or potentially sell itself. Possible suitors for the company include JP Morgan Chase & Co. (JPM), Citigroup Inc. (C), HSBC plc (HBC) and Wells Fargo & Co. (WFC).
Morgan Stanley (MS), one of the two remaining independent US investment banks, is reported in talks with the Chinese government for a cash infusion. In corporate news from Canada, Maple Leaf Foods (MFI.TO) said Wednesday that it is resuming production at its Bartor Road facility in Toronto, following the completion of a comprehensive pre-operation inspection conducted by the Canadian Food Inspection Agency. Maple Leaf voluntarily closed the plant after certain products were found to contain listeria.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.