TORONTO - The Toronto stock market headed for a weak open Wednesday as commodity prices continued to soften on worries about slower Chinese economic growth.
The Canadian dollar made slight gains against the American currency, up 0.06 of a cent to 97.89 cents US.
U.S. futures were higher as investors continued to watch developments in Europe’s government debt crisis. The Dow Jones industrial futures gained 34 points to 11,018, the Nasdaq futures were ahead 10.25 points to 2,101 while the S&P 500 futures were ahead 5.4 points to 1,180.
Oil prices hovered around US$82 a barrel amid a report showing U.S. crude supplies unexpectedly plunged last week.
Benchmark oil for December delivery was down 11 cents to $82.23 as the American Petroleum Institute said crude inventories fell 7.7 million barrels last week, suggesting that demand for fuel is rising. Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos, had expected an increase of 1.2 million barrels. The API also said gasoline stocks dropped while distillates rose.
The Energy Department’s Energy Information Administration reports its weekly supply data later Wednesday.
Copper prices continued to weaken, down another two cents to US$3.70 a pound. The metal’s price has plunged about nine per cent in the past week amid a stronger American dollar and concerns about what steps China could take to slow its economy after inflation hit a 25-month high in October.
A state media report of a days-old speech by Premier Wen Jiabao, the country’s top economic official, saying the cabinet is “drafting measures to suppress sharp rises of commodity prices” added to those expectations.
Gold prices rose slightly with the December contract on the Nymex up $2.60 to US$1,341 an ounce.
