Source: The Canadian Press

The Toronto stock market likely headed for a flat open Wednesday as commodity prices back off slightly and markets digest solid gains from the previous session.

Investors will have auto parts company Magna International (TSX:MG.A) in focus at the open after the Ontario Securities Commission said Tuesday that it wants to block a plan to eliminate a dual-class share structure at the firm that will see founder and chairman Frank Stronach receive millions in return.

The provincial regulator said shareholders are being asked to approve the plan without sufficient information to form a reasoned judgment. The OSC has scheduled a hearing for June 23, during which it will ask a commission panel to strike down the proposed transaction.


The Canadian dollar was down 0.38 of a cent to US$97.17.

U.S. futures also signalled a lower open as traders awaited reports on housing starts, inflation and industrial production.

The Dow Jones industrial futures backed off 46 points to 10,286, the Nasdaq futures were down 8.25 points to 1,885 while the S&P 500 index futures declined 5.9 points to 1,103.3.

The July crude contract on the New York Mercantile Exchange fell 50 cents to US$76.44 a barrel.

The drop in price came as the American Petroleum Institute released data after markets closed Tuesday which revealed a rise in both crude oil stocks and oil product stocks. Further inventory data will be released later in the morning by the U.S. Department of Energy.

The July copper contract on the Nymex eased three cents to US$2.97 a pound while the August gold contract in New York was off 60 centrs to US$1,233.80 an ounce.

Traders were also cautious ahead of economic numbers. Economists forecast that housing construction slowed in May after a homebuyer tax credit expired at the end of April. Analysts are also looking for wholesale prices to have fallen in May following a drop in gasoline and food costs.

Also, the Federal Reserve is expected to report that industrial production at U.S. increased 0.9 percent last month.

Stock markets had closed higher on Tuesday as hopes for higher demand boosted oil and copper prices while investors also took in data showing improving manufacturing activity in the New York area. The TSX ran up 240 points while the Dow industrials gained 214 points.

Overseas, London’s FTSE 100 index rose 0.29%. Shares in BP PLC slipped in London trading Wednesday ahead of what promises to be a tense meeting between the oil company’s chairman and U.S. President Barack Obama in Washington. Obama has vowed to make BP pay for all of the damage caused by its leaking well in the Gulf of Mexico, and has demanded that the company set up an independently controlled fund to assure that it will pay.

Frankfurt’s DAX added 0.14% while the Paris CAC 40 was off 0.01%.

Spanish shares were down 0.5% after local daily El Economista reported that the International Monetary Fund and European Union are preparing a financial backstop for Spain. Finance ministry officials in Spain denied the report.

In Asia, Japan’s Nikkei 225 stock average rose 1.8%, Australia’s ASX/S&P 200 advanced 1.2% and the Kospi in South Korea gained 0.9%. Financial markets in Hong Kong, mainland China and Taiwan were closed for the last day of public holidays.

In other corporate news, Bombardier Transportation (TSX:BBD.B) has won a contract with Swiss Railways to supply new double-deck trains for inter-city travel. The contract for 59 Bombardier Twindexx trains, with options for 100 more, has a total value of around US$1.6 billion.