Source: The Canadian Press

The Toronto stock market headed for a weaker open Thursday morning as the U.S. dollar strengthened against other currencies and commodity prices declined.

However, the Canadian dollar was stronger against the greenback with the loonie up 0.37 of a cent to 100.73 cents US.

U.S. futures pointed to a higher open amid optimism that the release of the December U.S. non-farm payrolls report on Friday will show solid job creation. The Dow Jones futures gained 34 points to 11,698, the Nasdaq futures were ahead 8.25 points to 2,278 and the S&P 500 futures advanced four points to 1,276.

Job growth hopes strengthened after Automatic Data Processing Inc. reported Thursday that the U.S. economy likely created just under 300,000 jobs last month. Economists had forecast that the official U.S. government report would show that the economy cranked out about half that number of jobs last month.

Investors were looking for further confirmation of an improving job picture when the U.S. Labour Department releases its latest data on initial claims for unemployment insurance later in the morning.

Reports showing higher than expected expansion in the U.S. manufacturing and service sectors have also encouraged investors this week while the U.S. dollar has strengthened.

The stronger greenback helped push the February crude contract on the New York Mercantile Exchange down 29 cents to US$90.01.

The ADP report and a report showing a drop in U.S. crude supplies for a fifth straight week sent prices higher on Wednesday. The Energy Department said commercial crude inventories fell 4.2 million barrels — more than the 1.6 million barrel decrease expected by analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos.

Metal prices were also lower as the March copper contract on the Nymex backed away three cents to US$4.38 a pound while the February bullion contract faded $5 to US$1,368.70 an ounce.

Overseas, Japan’s Nikkei 225 stock average, Asia’s largest market, rose 1.4% to its highest close since May 13.

Hong Kong’s Hang Seng index was up 0.1%, South Korea’s Kospi was down 0.2% while China’s Shanghai Composite index lost 0.5%.

London’s FTSE gained 0.67%, Frankfurt’s DAX was up 1.26% while the Paris CAC 40 advanced 0.9%.

In corporate news, the Ontario Securities Commission is looking to block a hostile takeover bid for Baffinland Iron Mines Corp. (TSX:BIM). The regulator will hear a request Thursday by commission staff to cease trade any shares tendered to the offer by Nunavut Iron Ore Acquisition Inc.

Nunavut Iron has offered $1.45 per share for Baffinland, while ArcelorMittal, the world’s largest steel company, has offered $1.40 per share in a friendly deal. ArcelorMittal is seeking all of Baffinland’s shares, while Nunavut Iron only wants to increase its stake in the company to 60% from about 10%.