* Canadian dollar at C$1.2527, or 79.83 U.S. cents
* Bond prices higher across a flatter yield curve
TORONTO, Feb 7 (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Wednesday as oil prices and U.S. stock index futures fell, while the greenback broadly rose.
At 8:50 a.m. EST (1350 GMT), the Canadian dollar CAD=D4 was trading 0.3 percent lower at C$1.2527 to the greenback, or 79.83 U.S. cents.
The currency traded in a range of C$1.2491 to C$1.2528.
World stocks clawed off two-month lows, though momentum was weak and U.S. futures suggested Wall Street could backslide again after rebounding from the biggest selloff in six years. currencies, such as the Canadian dollar, tend to underperform when stocks fall, because of the signal that it sends on prospects for global economic growth.
The loonie has retreated about 2 percent since stocks began to head sharply lower on Friday. One week ago, the currency touched its strongest in more than four months at C$1.2250.
The price of oil, one of Canada's major exports, fell as the boost from a report showing a drop in U.S. crude inventories last week was offset by evidence of soaring U.S. output. crude CLc1 prices were down 0.33 percent at $63.18 a barrel.
The U.S. dollar .DXY rose against a basket of major currencies as disappointment over reports that the leader of Germany's Social Democrats would not be taking over as finance minister for Europe's biggest economy weighed on the euro. value of Canadian building permits jumped by 4.8 percent in December from November, Statistics Canada said. Analysts had expected an increase of 2.0 percent. government bond prices were higher across a flatter yield curve, with the two-year CA2YT=RR up 0.5 Canadian cent to yield 1.837 percent and the 10-year CA10YT=RR rising 11 Canadian cents to yield 2.35 percent.
On Monday, the 10-year yield touched its highest intraday level since May 2014 at 2.393 percent.
Bank of Canada Senior Deputy Governor Carolyn Wilkins on Thursday will give a speech, which could offer the next clues on the outlook for interest rates. Canada's employment report for January is due on Friday.