The Toronto stock market seemed headed for a lower opening Friday as commodity prices stepped back amid a fresh round of concern about Chinese growth. The Canadian dollar was unchanged at 95.13 cents US. U.S. futures also pointed to a lacklustre session after China raised its reserve rate by half a percentage point, which requires large banks to set aside more cash at the central bank, which in turn leaves less money to lend out. Because Chinese growth has been one of the main drivers behind the global economy’s recovery from the downturn, the news unsettled investors. The Dow Jones industrial futures fell 48 points to 10,062, the Nasdaq futures moved 11.5 points lower to 1,764 while the S&P 500 futures lost 8.6 points to 1,068. Worries that Chinese economic growth could slow and affect demand for commodities pushed the March crude contract on the New York Mercantile Exchange down $1.37 to US$73.91 a barrel. The April gold contract on the Nymex declined $7.80 to US$1,086.90 an ounce while March copper fell seven cents to US$3.06 a pound. The mood was further soured by official figures in Europe showing the 16-country eurozone economy grew by only 0.1 per cent in the fourth quarter, with weak countries like Greece stifling the region’s overall recovery from recession. Even the currency bloc’s biggest economy and engine of growth, Germany, disappointed expectations as its GDP remained flat on the quarter. “The slowdown in growth at the end of 2009 is a blow,” said Jennifer McKeown, economist at Capital Economics. Stock markets had closed higher on Thursday amid a pledge by EU leaders to support Greece through its debt crisis. Although some investors were disappointed with a lack of detail and concrete measures, the hope is that a finance ministers’ meeting next week will provide these. In Asia, Japan’s market led gains, with the Nikkei 225 advancing 1.3 per cent. Trading activity has been subdued the past few days ahead of holidays next week for the Lunar New Year in China, Hong Kong and elsewhere. The Shanghai Composite index jumped 1.1 per cent. Hong Kong’s Hang Seng reversed early gains to close down 0.1 per cent. London’s FTSE 100 dipped 0.25 per cent, Frankfurt’s DAX was up 0.24 per cent and Frankfurt’s DAX was off 0.08 per cent. In corporate news, income trust Precision Drilling (TSX:PD.UN) said that it will convert into a growth-oriented corporation by the end of May. The company also handed in financial results showing a $24.9-million loss in the fourth quarter, compared with a profit of $92.4 million in the fourth quarter of 2008. The Calgary-based trust, one of North American energy sector’s biggest contract drillers, said the switch to a corporate structure will be more attractive to investors given changes to federal law announced in October 2006. Telus Corp. (TSX:T) earned $156 million or 49 cents of net income per share in the fourth quarter, down 49 per cent from $285 million or 90 cents per share a year earlier. Operating revenue slipped less than one per cent to $2.44 billion from $2.45 billion in the fourth quarter of 2008. Shoppers Drug Mart Corp. (TSX:SC) said Thursday it will use pricing and promotional activities to increase sales growth and market share this year. The retailer also announced a fourth-quarter profit of $171 million and said it will increase its quarterly dividend by about five per cent, to an annual rate of 90 cents per common share. Uranium giant Cameco Corp. (TSX:CCO) says all the water has been pumped out of its Cigar Lake mine and crews have safely re-entered its main working level 480 metres underground. The northern Saskatchewan uranium project, which is half owned by Cameco, has been flooded for three years.

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