January 7, 2016 / 12:40 PM / in 2 years

CANADA STOCKS-Futures lower after China turmoil, slide in oil

Jan 7 (Reuters) - Stock futures pointed to a sharply lower opening for Canada's main stock index on Thursday after China guided the yuan aggressively lower and oil prices slid to their lowest in more than a decade.

The People's Bank of China again surprised markets by setting the official midpoint rate on the yuan 0.5 percent weaker at 6.5646 per dollar, the lowest since March 2011.

March futures on the S&P TSX index were down 2.05 percent at 7:30 a.m. ET.

Data on Ivey PMI is due at 10:00 a.m. ET.

The Toronto Stock Exchange's S&P/TSX composite index fell for a sixth straight session on Wednesday as energy shares tracked crude oil prices lower, while heavyweight banks and railways declined on rising geopolitical tensions and growth worries.

Dow Jones Industrial Average e-mini futures were down 2.16 percent at 7:30 a.m. ET, while S&P 500 e-mini futures were down 2.18 percent and Nasdaq 100 e-mini futures were down 2.79 percent.

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

TOP STORIES

TransCanada Corp sued the U.S government on Wednesday to reverse President Barack Obama's rejection of the Keystone XL pipeline, and also plans to seek $15 billion in damages from a trade tribunal.

Bank of Nova Scotia, Canada's third biggest lender, is in discussions to sell a C$1 billion ($715 million) vendor and equipment financing portfolio, according to four sources familiar with the matter.

Oil and gas producer Crescent Point Energy Corp cut its capital budget for 2016 by as much as 39 percent from 2015.

COMMODITIES AT 7:30 a.m. ET

Gold futures : $1,095.60; +0.34 pct

US crude : $32.61; -3.97 pct

Brent crude : $32.93; -3.80 pct

LME 3-month copper : $4,492.50; -2.69 pct

ANALYST RESEARCH HIGHLIGHTS

Bank of Montreal : CIBC cuts target price to C$79 from C$83

Bombardier Inc : Cowen and Company starts coverage with "market perform" rating

Centerra Gold Inc : RBC raises rating to "sector perform" from "underperform"

U.S. ECONOMIC DATA DUE ON THURSDAY

0830 Initial jobless claims: Expected 275,000; Prior 287,000

0830 Jobless claims 4-week average: Prior 277,000

0830 Continued jobless claims: Expected 2.193 mln; Prior 2.198 mln

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$1.41) (Reporting by Nikhil Kumar in Bengaluru; Editing by Don Sebastian)

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