May 19, 2016 / 11:57 AM / 2 years ago

CANADA STOCKS-Futures lower as Fed signals rate hike in June

May 19 (Reuters) - Canada’s main stock index was set to open lower on Thursday on increased chances of a U.S. interest rate increase in June.

U.S. Federal Reserve officials said it would be appropriate to raise interest rates in June if economic data points to stronger second-quarter growth as well as firming inflation and employment, according to minutes from the latest policy meeting released on Wednesday.

June futures on the S&P TSX index were down 0.48 percent at 7:30 a.m. ET.

Wholesale Trade data is due at 8:30 a.m. ET.

The Toronto Stock Exchange’s S&P/TSX composite index retreated on Wednesday as mining and energy stocks fell, pressured by lower commodity prices after the Fed minutes release.

Dow Jones Industrial Average e-mini futures were down 0.17 percent at 7:30 a.m. ET, while S&P 500 e-mini futures were down 0.21 percent and Nasdaq 100 e-mini futures were down 0.21 percent.

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

TOP STORIES

Buyout firm Onex Corp has revived an auction for Carestream Health that could value it at more than $3 billion, including debt, and is exploring a breakup of the U.S. medical imaging company, people familiar with the matter said.

Pacific Exploration & Production Corp said its board was in favor of a restructuring proposal submitted by Catalyst Capital Group, after comparing it with a bid by EIG Global Energy Partners.

COMMODITIES AT 7:30 a.m. ET

Gold futures : $1,254.90; -1.52 pct

US crude : $47.27; -1.91 pct

Brent crude : $47.82; -2.29 pct

LME 3-month copper : $4,583.50; -0.63 pct

ANALYST RESEARCH HIGHLIGHTS

Acadian Timber Corp : CIBC cuts rating to “sector underperformer” from “sector performer”

Russel Metals Inc : Raymond James cuts rating to “market perform” from “outperform”

Touchstone Exploration Inc : Canaccord Genuity cuts rating to “hold” from “speculative buy”

U.S. ECONOMIC DATA DUE ON THURSDAY

0830 Initial jobless claims : Expected 275,000; Prior 294,000

0830 Jobless claims 4-week Average: Prior 268,250

0830 Continued jobless claims: Expected 2.163 mln; Prior 2.161 mln

0830 National Activity Index for Apr: Prior -0.44

0830 Philly Fed Business Index for May: Expected 3.5; Prior -1.6

0830 Philly Fed 6M Index for May: Prior 42.20

0830 Philly Fed Capex Index for May: Prior 12.70

0830 Philly Fed Employment Index for May: Prior -18.50

0830 Philly Fed Prices Paid Index for May: Prior 13.20

0830 Philly Fed New Orders Index for May: Prior 0.00

1000 Leading Index change mm for Apr: Expected 0.4 pct; Prior 0.2 pct

FOR CANADIAN MARKETS NEWS, CLICK ON CODES:

TSX market report

Canadian dollar and bonds report

Reuters global stocks poll for Canada

Canadian markets directory ($1= C$1.31) (Reporting by Nikhil Kumar in Bengaluru; Editing by Don Sebastian)

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