RTTNews - Bay Street stocks could see modest weakness early Wednesday as markets moved lower in and Europe, while U.S. futures are pointing to the downside. Traders mulled over data showing annual Canadian inflation dropped to its lowest level in 56 years.

Statistics Canada reported the annual Canadian consumer price index fell 0.9% in July, compared to an 0.8% drop a year ago. CPI fell 0.3% in July, compared to an 0.2% drop in June. CPI is expected to rise 0.3% year-over year, compared to an 0.8% drop last year and rise 0.3% month-on-month, compared to an 0.2% decline in June.

Annual core CPI rose 1.8% in JUly, compared to a 1.9% rise a year ago. On a monthly basis, core CPI rose 0.1% in July, after coming in unchanged in June.

On the corporate front, Sears Canada (SCC.TO) announced that its second-quarter net earnings were C$49.1 million or C$0.45 per share, compared to C$61.5 million or C$0.57 per share in the second quarter last year.

Nufcor Uranium (NU.TO) announced that its fiscal 2009 loss was US$26.27 million or US$0.637, compared to a loss of US$216.95 million or US$5.173 per share in the year ago quarter. Income for the year was US$3.83 million, down from US$4.21 million in the prior year.

Twin Butte Energy (TBE.TO) and Buffalo Resources Corp. (BFR.V) announced that they have entered into a merger arrangement worth C$119 million.

Crude oil prices fell 60 cents to $68.59 per barrel, while gold dipped $2.70 to $936.50 an ounce and copper lost 8.35 cents to $2.691 a pound.

The S&P/TSX Composite Index surged 142.25 points or 1.35% on Tuesday to move at 10,673.84. The market fell 2.9% on Monday.

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