Canada's main stock index was set to open lower on Thursday, a day after recording its worst day in over a week, dragged down by weaker crude prices and investor worries about soaring domestic inflation.

June futures on the S&P/TSX index were down 0.9% at 6:49 a.m. ET.

Oil prices fell, following earlier gains, on concerns high fuel rates could hurt economic growth, but planned easing of restrictions in Shanghai and a tight supply outlook capped losses.

Canada's annual inflation rate rose faster than expected in April, official data showed on Wednesday. Analysts warned soaring used-car and gasoline prices could stoke the trend, raising pressure on the central bank to tighten policy quickly.

Producer prices and raw materials prices data for April is due at 08:30 a.m. ET

The Toronto Stock Exchange's S&P/TSX composite index ended 1.9% lower at 20,101.38 on Wednesday.

Dow e-minis were down 415 points, or 1.32%, at 6:49 a.m. ET, while S&P 500 e-minis were down 54.75 points, or 1.4%, and Nasdaq 100 e-minis were down 181.5 points, or 1.52%.

 

TOP STORIES

Canada's Brookfield Asset Management has agreed to buy British home repair services firm HomeServe for 4.08 billion pounds ($5.04 billion), as it looks to broaden its exposure to UK residential infrastructure investments.

Canada's Turquoise Hill Resources Ltd said on Wednesday Rio Tinto, will provide it interim debt funding of up to $400 million while it evaluates the Anglo-Australian miner's $2.7 billion bid for the company.

ANALYST RESEARCH HIGHLIGHTS

Canopy Growth Corp: CIBC cuts target price to C$6.50 from C$9

Saputo Inc: National Bank Of Canada cuts target price to C$31 from C$33

 

COMMODITIES AT 7:00 a.m. ET

Gold futures: $1825.3; +0.52%

US crude: $107.67; -1.74%

Brent crude: $107.96; -1.08%

 

U.S. ECONOMIC DATA DUE ON THURSDAY

0830 Initial jobless claim : Expected 200,000; Prior 203,000

0830 Jobless claim 4week average : Prior 192,750

0830 Continue jobless claim : Expected 1.320 mln; Prior 1.343 mln

0830 Philly Fed Business Index for May : Expected 16.0; Prior 17.6

0830 Philly Fed 6M Index for May : Prior 8.20

0830 Philly Fed Capex Index for May : Prior 19.90

0830 Philly Fed Employment for May : Prior 41.40

0830 Philly Fed Prices Paid for May : Prior 84.60

0830 Philly Fed New Orders for May : Prior 17.80

1000 Existing home sales for Apr : Expected 5.65 mln; Prior 5.77 mln

1000 Existing home sales percentage change for Apr : Prior -2.7%

1000 Leading index change mm for Apr : Expected 0.0%; Prior 0.3%

 

Canadian markets directory ($1= C$1.28)

(Reporting by Amal S in Bengaluru; Editing by Krishna Chandra Eluri)