TSX may open lower on global economic worries

Fri Aug 19, 2011 8:49am EDT
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Aug 19 (Reuters) - Toronto's main stock index looked set to open lower on Friday, extending the previous day's losses, on worries about global growth and expectations that the Bank of Canada will cut its short-term forecast for the economy.


* Canadian equity futures <0#SXF:> pointed to a lower open.

* Canada's dollar edged higher against the U.S. currency, though was still weaker on the day, after data showed Canada's annual inflation rate eased in July. [CAD/]

* Bank of Canada Governor Mark will appear before a Parliamentary committee at 10 a.m. EDT (1400 GMT). He is expected to cut the central bank's short-term growth forecast and provide more details about when interest rates might move.

* Finance Minister Jim Flaherty will also testify to the committee starting at 9 a.m.

* Mounting concern the U.S. economy may slip back into recession hobbled stock index futures, a day after the S&P 500 lost 4.5 percent. [.N]

* European shares approached two-year lows, extending the previous session's plunge, on fears that major economies are heading for recession and that policymakers have no answer to the euro zone debt crisis. [.EU]

* Markets in Asia were also in red with the Nikkei shedding 2.1 percent for a third day of declines, while Korea's KOSPI tumbled over 6 percent and Taiwan down almost 4 percent, suggesting the pressure was more on markets with a higher exposure to technology. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ To receive an early e-mail of Reuters Morning News Call - Canada -- a preview of market moving news -- Thomson Reuters subscribers can register at [CA/MNC] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^   Continued...