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Apr. 8, 2010 (Baystreet.ca) --
Toronto's main stock index opened substantially lower on Thursday as oil prices declined for a second day, hurting the weighty energy sector, but losses may be offset by gold prices that are close to three-month highs. The S&P/TSX Composite Index began the day by losing 105.43 points to 12,005.47. The index could also follow global stocks and U.S. futures, which edged lower as relentless fears over Greece's public finances unsettled investors worried about sovereign debt defaults in Europe. On the macro front, shares may extend losses after the number of U.S. workers filing new claims for unemployment insurance rose unexpectedly last week. Toronto's main stock index ended lower for a second straight session on Wednesday, pulled down in a broad selloff that was led by the energy group. Oil slipped for a second day below $85 U.S. a barrel, pressured by a stronger dollar and a rise in U.S. crude stockpiles to their highest level in nearly 10 months. Gold steadied in Europe close to the near three-month highs it hit in the previous session, as the dollar's rise versus the euro capped gains in the precious metal. Copper dropped to a one-week low in the absence of fresh impetus to keep its rally going and on doubt by investors that supply and demand fundamentals justified prices around $8,000 U.S. a tonne. Markets pounded Greek bonds and banking stocks, driving the country's borrowing costs to new highs and pushing it closer to tapping a last-resort safety net. The Canadian dollar fell further back from parity with the U.S. currency on Thursday as oil prices retreated further and euro zone worries persisted. In company news, Dollarama Inc. said on Thursday its quarterly profit rose more than 400% as recession-weary shoppers flocked to Canada's largest operator of dollar stores. Canada's Pacific Northern Gas Ltd. said it will buy a hydro-electricity generation facility from Kiewit Hydropower Investors Inc and Renewable Power for about $17 million to boost its asset base. Canadian cable and telecommunications company Cogeco Inc. and its subsidiary Cogeco Cable Inc posted a second-quarter profit, helped by a growth in revenue-generating units in the cable business. The Canadian dollar slid 0.46 cents to 99.10 cents U.S. ON BAYSTREET All 14 TSX subgroups hurtled earthward, weighed down mostly by a 3.1% drop by consumer staples. The metals and mining sector plunged 1.8% and energy stocks dwindled in value by 1.7%. The TSX Venture Exchange gave back 6.11 points to 1,641.07, while the Nasdaq Canada index slid 6.93 points to 771.21 ON WALLSTREET In New York, stock prices fell Thursday after the government reported a surge in the number of Americans filing first-time claims for unemployment benefits, suprising economists who expected a decline. The Dow Jones industrial average was lighter by 42.70 points in the early going to 10,854.82. The S&P 500 dumped 6.07 points to 1,176.38. The Nasdaq slipped 14.70 points to 2,416.46. U.S. stocks retreated Wednesday after General Motors reported a huge loss and a report showed a drop in consumer borrowing. Economically speaking, there were 460,000 initial jobless claims filed in the week ended April 3, up 18,000 from an upwardly revised 442,000 the previous week, according to the Labor Department's weekly report. Economists surveyed by Briefing.com had expected 442,000 claims. The number of new claims was just below the level reached in the Feb. 27 week, when initial claims totaled 466,000. Separately, investors are looking to March sales results from large chain stores, which were coming in stronger than forecast. Solid sales could reinforce the view that consumer confidence is on the mend. UAL's United Airlines and US Airways have restarted talks about a potential merger, according to several news reports. The deal would create the second-largest U.S. airline, the reports said. Stocks of other major airlines were poised to open higher. U.S. Treasurys tumbled sharply, raising the yield on the benchmark 10-year note to 3.85% from Wednesday's 3.96%. Bond prices and yields move in opposite directions. The price of a barrel of oil skidded $1.04 to $84.84 U.S. Gold prices sliced off two dollars to $1,151 U.S. an ounce.