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CANADA STOCKS-Weak economic data weighs on futures

Published 2016-07-29, 09:15 a/m
CANADA STOCKS-Weak economic data weighs on futures
XAU/USD
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TECK
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POT
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GC
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HG
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LCO
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ESZ24
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CL
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1YMZ24
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NQZ24
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SXFc1
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0P6E
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CVE
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IMO
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AC
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GG
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ENB
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(Adds economic data)

July 29 (Reuters) - Futures pointed to a lower start for Canada's main stock index on Friday after data showed Canadian economy recorded its biggest monthly decline since March 2009 as wildfires in northern Alberta caused a sharp drop in oil extraction.

Monthly gross domestic product fell 0.6 percent in May, topping economists' expectations for a decline of 0.4 percent. futures on the S&P TSX index SXFc1 were down 0.12 percent at 8:45 a.m. ET.

Weakness in oil prices, with Brent prices on track for its biggest monthly loss since December 2015, also weighed on investor sentiment. U.S. economy grew far less than expected in the second quarter as inventories fell for the first time since 2011. The Commerce Department said on Friday gross domestic product increased at a 1.2 percent annual rate after rising by a downwardly revised 0.8 percent pace in the first quarter. Canada also reported producer prices rose in June as the cost of energy and petroleum products increased for a fourth month in a row. main stock index eked out a small gain on Thursday, helped by positive earnings surprises from Teck Resources Ltd TCKb.TO and others, while disappointment over Potash Corp's POT.TO dividend and outlook cut and other earnings misses weighed. Jones Industrial Average e-mini futures 1YMc1 were down 0.26 percent at 8:45 a.m. ET, while S&P 500 e-mini futures ESc1 were down 0.20 percent and Nasdaq 100 e-mini futures NQc1 were up 0.07 percent. .N

(Morning News Call newsletter http://link.reuters.com/nex49s; The Day Ahead newsletter http://link.reuters.com/mex49s)

TOP STORIES TOP/CAN

Air Canada AC.TO reported a better-than-expected quarterly profit on lower fuel expenses and the country's largest airline cut its cost estimate for the year. Inc ENB.TO ENB.N , Canada's largest pipeline company, reported a 47.8 percent fall in quarterly profit as the company's liquids pipeline business was hit by a massive wildfire in Fort McMurray, Alberta. Oil Ltd IMO.TO , Canada's No.2 integrated oil producer and refiner, reported a quarterly loss due to the impact of wildfires in Fort McMurray, Alberta. AT 7:30 a.m. ET COM/WRAP

Gold futures GCc2 : $1,340.80; +0.64 pct GOL/

US crude CLc1 : $40.87; -0.66 pct O/R

Brent crude LCOc1 : $42.12; -1.36 pct O/R

LME 3-month copper CMCU3 : $4,884; -0.26 pct MET/L

ANALYST RESEARCH HIGHLIGHTS RCH/CA

Cenovus Energy Inc CVE.TO : UBS raises price target to C$20 from C$19; rating "neutral"

First Quantum Minerals Ltd FM.TO : Paradigm raises price target to C$15.50 from C$8.50

Goldcorp Inc G.TO : Canaccord Genuity cuts price target to C$27 from C$30

U.S. ECONOMIC DATA ON FRIDAY

0830 GDP advance for Q2: Actual 1.2 pct; Revised 0.8 pct

0830 GDP sales advance for Q2: Actual 2.4 pct; Revised 1.2 pct

0830 GDP consumer spending advance for Q2: Actual 4.2 pct; Revised 1.6 pct

0830 GDP deflator advance for Q2: Actual 2.2 pct; Revised 0.5 pct

0830 Core PCE prices advance for Q2: Actual 1.7 pct; Revised 2.1 pct

0830 PCE prices advance for Q2: Actual 1.9 pct; Revised 0.3 pct

0830 Employment wages qq for Q2: Actual 0.6 pct; Prior 0.7 pct

0830 Employment benefits qq for Q2: Actual 0.5 pct; Prior 0.5 pct

0830 Employment costs for Q2: Actual 0.6 pct; Prior 0.6 pct

0945 Chicago PMI for Jul: Expected 54.0; Prior 56.8

1000 University of Michigan Consumer Sentiment Index Final for Jul: Expected 90.5; Prior 89.5

1000 University of Michigan Current Conditions Index Final for Jul: Expected 109.0; Prior 108.7

1000 University of Michigan Consumer Expectations Index Final for Jul: Expected 79.5; Prior 77.1

1000 University of Michigan 1 Year Inflation Expectations final for Jul: Prior 2.8 pct

1000 University of Michigan 5 Year Inflation Expectations final for Jul: Prior 2.6 pct

1030 ECRI Weekly Index: Prior 138.1

1030 ECRI weekly annualized: Prior 7.5 pct

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report .TO

Canadian dollar and bonds report CAD/ CA/

Reuters global stocks poll for Canada EQUITYPOLL1 EPOLL/CA

Canadian markets directory CANADA ($1= C$1.32)

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