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Inside the Market

Premarket: Nikkei plunges again, TSX pointed lower Add to ...

Expect quiet trading in Canada, with U.S. markets closed for the Memorial Day holiday, although the TSX is likely to see some modest pressure at the open after Japanese equities suffered major losses again overnight.

The Nikkei was down 3.21 per cent, as profit-takers were out in full force after the index's more than 7 per cent plunge on Thursday. The yen saw more gains overnight - a negative for the country's stock market because of the dampening impact it has on exports - with the U.S. dollar dipping below ¥101 at points during the day.

More Related to this Story

The yen rose 1.9 per cent against the greenback last week, its biggest five-day advance in a year, but the currency is still down 17 per cent in the past six months versus nine developed-nation counterparts, according to Bloomberg. Some weekend comments from the Bank of Japan's top official didn't help to stem equity losses. Governor Haruhiko Kuroda reiterated earlier comments from the bank that interest rates could rise between 1 and 3 percentage points in an improving economy without causing instability.

European markets are generally higher this morning, as investors bet that last week's minor correction may make way for further gains. U.S. stock futures and economically sensitive commodities are a little lower, however, suggesting the gains in Europe may not spread to Canada.

Gold is edging higher, after International Monetary Fund data showed Russia and Kazakhstan expanding gold reserves for the seventh straight month in April.

Now, here's the rundown of what else is happening this morning and what's to come.

MARKETS:

Equities:

Futures: S&P Toronto -0.21 per cent; S&P 500 -0.21 per cent; Dow -0.14 per cent; Nasdaq -0.12 per cent

Hong Kong's Hang Seng +0.30 per cent

Shanghai composite index +0.20 per cent

Japan's Nikkei -3.21 per cent

London’s FTSE 100 Closed for holiday

Germany’s DAX +0.55 per cent

France's CAC 40 +0.66 per cent

Italy's FTSE MIB +1.09 per cent

Commodities:

WTI crude oil (Nymex Jly) -0.74 per cent at $93.55 (U.S.) a barrel

Gold (Comex Aug) +0.06 per cent at $1,393.60 (U.S.) an ounce

Copper (Comex July) -0.05 per cent at $3.30 (U.S.) a pound

Currencies:

Canadian dollar down 0.0019, or 0.19 per cent, at $0.9686 (U.S.)

ECONOMIC INDICATORS TO WATCH:

No major reports scheduled.

STOCKS TO WATCH

Valeant Pharmaceuticals International Inc. will see active trading after it confirmed it is buying Bausch & Lomb for $8.7-billion (U.S.) in cash.

National Bank of Canada was upgraded to "buy" from "hold" by Canaccord Genuity, with an increased price target of $89, following the company's earnings beat last week. 

THIS MORNING'S TOP INVESTING READS ON THE WEB:

How Bill Gross topped the S&P 500.

Hedge funds are the least bullish on gold in more than five years.

How to pick post-stock-split winners.

Despite their big bull run, dividend-paying stocks still make sense.

The euro zone's economy could surprise to the upside.

Why gold bugs right now may have a good point.

Central banks covering 27 per cent of the world slashed interest rates this month.

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The premarket report is constantly updated to reflect the latest news developments and market moves. For instant headlines on breaking economic and corporate news in the premarket, follow Darcy Keith on Twitter at @eyeonequities.

Follow on Twitter: @eyeonequities

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