Toronto stocks look set to fall, following slumps in other world indices, after debt problems at Dubai's government investment company rattled confidence in financial markets.
Dubai World said on Wednesday that's it's seeking to delay repayment of much of its $59 billion U.S. in debt.
The news pulled the U.S. dollar up from a 14-year low against the Japanese yen as investors sought the traditional safe haven of the greenback. Gold and commodity prices fell.
Stocks in Europe tumbled with the Dow Jones Stoxx 600 Index losing the most in three weeks, while China's Shanghai Composite Index fell 3.6%.
The S&P/TSX closed higher on Wednesday, but is likely to fall today, pulled down by its heavy weighting in gold and commodity stocks, traders say.
The news is already weighing on the Canadian dollar, which fell versus its U.S. counterpart. The U.S. markets are closed for the Thanksgiving holiday today. At 8:30 a.m., the loonie was at C$1.055 to the U.S. dollar, or 94.79 U.S. cents. It closed at C$1.0455 to the U.S. dollar, or 95.65 U.S. cents on Wednesday.
