Toronto stock market likely to open lower as commodities prices drop

TORONTO – Weaker commodity prices are likely to send the Toronto stock market lower in early trading on Thursday, after some disappointing figures on the global economy were released overseas.

The Canadian dollar fell 0.43 of a cent to 102.19 cents US.

Dow Jones industrial futures are down 39 points to 13,458. The broader S&P futures are down 4.5 points to 1,448.70. Nasdaq futures have lost 7.25 points to hit 2,846.25.

The price of crude extended its pullback with the October contract on the New York Mercantile Exchange down 19 cents to US$91.79 a barrel.

Copper futures slid 6.5 cents to US$3.75 a pound while gold bullion fell $5.70 to US$1,766 an ounce.

Among the sobering news for investors was a survey in Europe pointing to a deepening recession in Europe, figures from Japan that showed the country’s powerhouse export sector was continuing to suffer and a private survey of manufacturers in China that showed activity fell again in September, though at a slightly slower pace than August.

In the U.S., the Philadelphia Federal Reserve Bank’s gauge of regional manufacturing activity will give traders another glimpse at how the global economy is faring.

In corporate developments, the outcome of a shareholder vote on a proposed Chinese takeover of Nexen Inc. (TSX:NXY) is expected on Thursday. It is widely expected that investors will approve the $15.1-billion offer from China National Offshore Oil Company.

In Europe, the FTSE 100 index of leading British shares was down 0.6 per cent at 5,852 while Germany’s DAX fell 0.5 per cent to 7,351. The CAC-40 in France was 0.8 per cent lower at 3,503.

Wall Street was poised for a lower opening too, with both Dow futures and the broader S&P 500 futures down 0.3 per cent.

Earlier, the losses in Asia were more acute than in Europe, largely because they enjoyed a stronger advance Wednesday in the immediate aftermath of the Bank of Japan’s easing.

Japan’s Nikkei 225 index dropped 1.6 per cent to close at 9,086.98 while South Korea’s Kospi shed 0.9 per cent to 1,990.33. Hong Kong’s Hang Seng lost 1.2 per cent to 20,590.92.

In mainland China, the Shanghai Composite Index tumbled 2.1 per cent to 2,024.84, the lowest closing in more than three years. The Shenzhen Composite Index lost almost 3 per cent to 840.21.