June 11, 2020 / 11:46 AM / 25 days ago

CANADA STOCKS-Falling oil prices drag TSX futures lower

June 11 (Reuters) - Futures for Canada’s main stock index fell on Thursday, as oil prices dropped on a record build-up in U.S. crude inventories and a dour economic outlook from the U.S. Federal Reserve.

Brent crude futures tumbled 3.6% after data showed U.S. crude inventories rose to a record 538.1 million barrels in the week to June 5, boosted by the arrival of supplies bought by refiners when Saudi Arabia flooded the market in March and April.

Challenging market optimism, the Fed on Wednesday projected the U.S. economy would shrink 6.5% in 2020 and the unemployment rate would still be 9.3% at year’s end.

June futures on the S&P/TSX index were down 1.51% at 7:00 a.m. ET.

On Wednesday, the Toronto Stock Exchange’s S&P/TSX composite index ended 0.84% lower at 15,701.33.

Dow Jones Industrial Average e-mini futures were down 2.06% at 7:00 a.m. ET, while S&P 500 e-mini futures were down 1.68% and Nasdaq 100 e-mini futures were down 1.29%.

TOP STORIES

Canadian plane maker Bombardier Inc is to cut around 400 jobs in its Northern Ireland operations, it said on Thursday, part of plans announced last week to cut 2,500 jobs or about 11% of the workforce in its global aviation unit.

ANALYST RESEARCH HIGHLIGHTS

North West Company Inc: TD Securities raises target price to C$32 from C$30

Transcontinental Inc: BMO cuts target price to C$16.50 from C$17.50

Tricon Capital Group Inc: Scotiabank raises target price to C$11 from C$10.25

COMMODITIES AT 7:00 a.m. ET

Gold futures: $1734.3; +1.1%

US crude: $38.03; -3.96%

Brent crude: $40.34; -3.33%

U.S. ECONOMIC DATA DUE ON THURSDAY

0830 Initial jobless claims: Expected 1,550,000; Prior 1,877,000

0830 Jobless claims 4-week average: Prior 2,284,000

0830 Continued jobless claims: Expected 20.000 mln; Prior 21.487 mln

0830 PPI final demand yy for May: Expected -1.2%; Prior -1.2%

0830 PPI final demand mm for May: Expected 0.1%; Prior -1.3%

0830 PPI exfood/energy yy for May: Expected 0.4%; Prior 0.6%

0830 PPI exfood/energy mm for May: Expected -0.1%; Prior -0.3%

0830 PPI ex food/energy/transport yy for May: Prior -0.3%

0830 PPI ex food/energy/transport mm for May: Prior -0.9%

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$1.35) (Reporting by Yoganand KN in Bengaluru; Editing by Aditya Soni)

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