CANADA STOCKS-TSX may open lower after overseas markets drop

Wed Aug 25, 2010 8:26am EDT
 
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Aug 25 (Reuters) - Toronto's main stock index could open lower on Wednesday after overseas equities dropped and weak U.S. housing figures stirred concerns about the economic recovery in Canada's biggest trading partner.

FACTORS TO WATCH

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

* U.S. stock index futures dipped on Wednesday as weakness in equities markets overseas kept traders cautious ahead of upcoming U.S. data on durable goods orders and home sales. [.N]

* European shares fell by midday on Wednesday, adding to hefty losses a day earlier, with the cut in Ireland's credit rating by Standard & Poor's weighing on sentiment and as fears persisted over the outlook for the global economy. [.EU]

* Tokyo's Nikkei average hit a 16-month closing low on Wednesday, at one point falling over 2 percent on disappointment over Japanese inaction on the strong yen, which threatens a fragile economic recovery. [.T]

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.19 percent in early trade.

* Crude bounced from a seven-week low Wednesday as investors looked for relief in U.S. oil inventory numbers due later in the day, heartened by Tuesday's figures indicating a fall in crude stocks. [O/R]   Continued...