Nov. 27, 2009 (Baystreet.ca) --
Toronto stocks could continue to see weakness on Friday morning as worries over Dubai's debt problems drove commodities sharply lower.
In the first half-hour of trading, the S&P/TSX Composite Index found itself down 17.40 points to 11,419.40, after Thursday's 200-point tumble.
Gold prices are down, while copper has plunged 10.7 cents to $3.0965 U.S. Things aren't any better in the oil pits as crude has dropped sharply.
Global markets are falling after Dubai asked to postpone payments on $60 billion U.S. in debt until May.
In corporate news, Wireless services provider WebTech Wireless Friday said it has reduced its full-time workforce by over 10% and adopted other cost-saving measures.
The Canadian dollar slid 0.91 cents to 93.35 cents U.S.
ON BAYSTREET
All but one of the 14 TSX subgroups started the day lower, weighed by global base metals, off 3%, gold, down 2.4% and metals and mining, losing 1.3%.
Only a 0.1% advance by financials cut through the early gloom.
The TSX Venture Exchange gave back 31.71 points to 1,387.64, while the Nasdaq Canada surrendered 22.66 points to 640.59.
ON WALLSTREET
In New York, stocks opened sharply lower Friday, following sharp declines in Asian markets, as Dubai World and its debt woes threatened Wall Street's confidence.
The Dow Jones Industrials started an abbreviated day lower by 184.86 points – 1.8% -- to 10,279.54.
The S&P 500 index stumbled 23.31 points to 1,087.32, while the Nasdaq jettisoned 44.85 points to 2,131.20.
Markets stateside close at 1 p.m. EST today.
Wall Street ended Wednesday on a positive note, with the Dow Jones rising 31 points to hit a fresh 13-month high.
Stocks were boosted by tumbling jobless claims, which the Labor Department said hit a 14-month low last week, and a rise in new home sales.
The number of shares changing hands is expected to be low with many market participants absent following Thursday's holiday. As a result, trading is expected to be choppy Friday.
The problems stem from Dubai World, the finance arm of Dubai, which is considering a postponement of payments on nearly $60 billion U.S. in debt. The debt was used to fuel a construction boom over the last few years, including its palm-tree-shaped island projects, but the Middle East nation was hit hard by a real estate crunch.
Retailers -- including Toys R Us, which opened its doors at midnight on Thanksgiving -- were welcoming shoppers taking advantage of "doorbuster" deals to mark Black Friday, the traditional kickoff to the holiday shopping season. Wal-Mart Stores, the world's biggest retailer, stayed open Thanksgiving Day, but offered its specials beginning at 5 a.m.
While economists are calling an end to the recession, a record high jobless rate at 10.2% and a tight lending environment were likely to cause consumers to curb spending.
AIG announced late Wednesday it agreed to settle a long-standing legal battle with the insurance giant's former chairman, Maurice "Hank" Greenberg.
The parties agreed to release each other from all claims, including those filed by Greenberg against AIG for payments of future legal fees and other settlement costs.
They also agreed to submit past claims for AIG's payment of legal fees to a third party to determine how much AIG is legally obligated to pay up to $150 million U.S.
Treasury prices shot up, lowering the yields on the benchmark 10-year note to 3.23% from Wednesday's 3.26%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil tumbled $3.35 to $74.61 U.S.
Gold prices dumped $33 to $1,156 U.S.
