Canadian Stocks Set For Lower Open -- Canadian Commentary

(RTTNews) - Canadian stocks are headed for a lower opening Thursday, tracking weakness in European markets amid tougher U.S. and European Union sanctions on Russia.

Weak U.S. housing data could weigh as well. However, a report from U.S. Labor Department showing an unexpected drop in initial jobless claims last week could help lift sentiment and limit market's downside.

Energy stocks are likely to edge higher on higher crude oil prices.

On Wednesday, the S&P/TSX Composite Index ended up 145.02 points or 0.96 percent at 15,226.34, with investors reacting positively to Bank of Canada's interest rate decision and an upbeat Chinese GDP data.

Colabor Group Inc. (GCL.TO) reported second-quarter net earnings of C$1.63 million or C$0.06 per basic share, compared to C$2.39 million or C$0.09 per basic share, a year ago.

Valeant Pharmaceuticals International Inc. (VRX.TO) has announced that its subsidiary, Bausch + Lomb has received 510(k) clearance from the U.S. Food and Drug Administration for the VICTUS Femtosecond Laser Platform for laser-assisted lens fragmentation during cataract surgery.

In commodities, crude oil prices are higher this morning, amid renewed worries about supplies following a drop in U.S. crude stockpiles and reports of fresh violence in Iraq and Ukraine.

Crude oil futures for August are up $1.50 or 1.48 percent at $102.70 a barrel.

Natural gas for August is down $0.044 or 1.08 percent at $4.075 per million btu.

Gold futures for August are up $3.50 or 0.27 percent at $1,303.30 an ounce.

Silver for September is up $0.098 or 0.47 percent at $20.873 an ounce. Meanwhile, copper is down marginally at $3.213 per pound.

In economic news from the U.S., a report from the Labor Department showed initial jobless claims to have declined by 3,000 to a seasonally adjusted 302,000 in the week ended July 12. Economists expected jobless claims to increase to 310,000 in the week.

Meanwhile, data from the Commerce Department showed new residential construction in the U.S. to have unexpectedly dropped in June, falling to a nine-month low. The Commerce Department said housing starts tumbled 9.3 percent to an annual rate of 893,000 in June from the revised May estimate of 985,000. Economists had expected housing starts to climb to 1.020 million in the month.

Building permits, an indicator future housing demand, also fell 4.2 percent to an annual rate of 963,000 in June from the revised May rate of 1.005 million.

Investors will now look ahead to the Philadelphia Federal Reserve is due to release the results of its regional manufacturing survey, due at 10 am ET.