Canada's main stock index was set to open lower on Wednesday as the initial enthusiasm faded about strong demand at European Central Bank's three-year tender
Banks borrowed a whopping 489 billion euros, the highest-ever uptake from the central bank, highlighted the funding squeeze in credit markets.
FACTORS TO WATCH
Canadian equity futures pointed to a lower open.
U.S. stock index futures turned negative as doubts set in that a large take-up at the European Central Bank's three-year funding operation will ease a regional credit crunch. <.N>
European stocks reversed gains and drifted lower, as the initial enthusiasm that followed strong demand for the ECB's 3-year tender faded and fears over the region's debt crisis resurfaced. <.EU>
COMMODITY PRICE MOVES
The Thomson Reuters-Jefferies CRB index <.CRB>, a global commodities benchmark, fell 0.02 percent in early trade.
Oil prices rose to around $107 a barrel after the European Central Bank's offer of three-year loans to banks raised hopes the euro zone would avert a liquidity crisis and head towards economic recovery.
Gold rose as the euro continued its break higher versus the dollar, after a tender for cheap loans from the European Central Bank saw a greater take-up among banks than expected.
Copper prices rose to their highest levels in more than a week on an upbeat outlook for the U.S. economy and an encouraging take-up by banks from the European Central Bank's lending operation.
CANADIAN STOCKS TO WATCH
Research In Motion Ltd.
TMX Group Inc.
Longview Oil Corp.
(Reporting By Chandra Ramarathnam)