TSX heads for lower open amid Europe concerns

U.S. futures were lower with the Dow Jones industrial futures down 57 points to 15,653, the Nasdaq futures declined 12.5 points to 3,352 and the S&P 500 futures lost 6.5 points to 1,758.5.

Eurostat, the EU’s statistics office, reported that industrial output across the 17-country eurozone fell a monthly rate of 0.5 per cent in September.

The fall was slightly larger than expected and means the sector weighed on third-quarter growth.

The decline during the month was largely due to falls in the core economies of Germany and France.

Traders also looked to confirmation hearings for Janet Yellen as the new Federal Reserve chief on Thursday could provide a fresh cue for financial markets. Investors will look to her testimony for clues about when the Fed will begin reducing its massive monetary stimulus that has supported a strong rally on many stock markets and kept the lid on long-term rates.

Yellen, known for her dovish stance on stimulus, has been tapped to replace Ben Bernanke as Fed chairman at the end of January.

There was also lingering disappointment that a meeting of Chinese leaders failed to yield reforms to a growth model that is seen as running out of momentum.

Communist Party leaders in Beijing wrapped up a four-day meeting on the economy late Tuesday.

Reform advocates had hoped for major changes such as curbing the dominance of state industry.

But they were disappointed as the ruling party said only that market forces will play a “decisive role” in China’s economy, an upgrade from “core role” assigned to the market.

On the earnings front, grocers were in the spotlight with Loblaw Companies Ltd. (TSX:L) lowering its 2013 forecast for profit growth due to thinner margins in the second half of the year. Loblaw also said its quarterly net income was $154 million or 55 cents per share, which was down 28.6 per cent a year earlier. Ex-items, earnings were $220 million or 78 cents per share, down 3.7 per cent a year ago. However, revenue was up 1.9 per cent to $10 billion.

Metro (TSX:MRU) posted adjusted fully diluted net earnings per share from continuing operations of $1.19, up 4.4 per cent from a year ago. However, sales were down 1.1 per cent to $2.6 billion while same store sales fell 1.8 per cent. Metro increased its quarterly dividend to 25 cents, up 16.3 per cent.

On the commodity markets, December crude on the New York Mercantile Exchange gained 42 cents to US$93.46 a barrel.

Copper prices fell for a second day in the wake of the Chinese leadership meeting, down five cents to US$3.19 a pound.

Bullion prices advanced with the December contract up $4.20 to US$1,275.40 an ounce.

European bourses were lower with London’s FTSE 100 index down 1.45 per cent, Frankfurt’s DAX 30 lost 0.8 per cent and the Paris CAC 40 fell 0.97 per cent.

In Asia, disappointment with the outcome of the Chinese leadership meeting pushed the Shanghai Composite plunged 1.8 per cent and Hong Kong’s Hang Seng sank 1.9 per cent. Tokyo’s Nikkei shed 0.2 per cent, South Korea’s Kospi lost 1.6 per cent and Australia’s S&P/ASX 200 fell 1.4 per cent.