Luke KawaThe Globe and Mail
The Before the Bell report is updated throughout the premarket to reflect the latest news developments and market moves. Check back later for updates.
U.S. equity futures fell sharply after Chinese regulators made alterations that could derail the world's hottest index.
Chinese policymakers limited the means by retail investors to take on more leverage and opened up the scope for short-selling. Futures for the Asian powerhouse plunged in after-hours trading.
After China fell, European bourses were the next dominoes to fall, followed by U.S. equity futures.
Investors in North America will have lots of data to examine Friday. Canada and the United States will publish the latest reading on inflation for March at 8:30 a.m. ET. Still-subdued price increases has been the largest element keeping the U.S. Federal Reserve from hiking rates following substantial improvements in the labour market. The change in the consumer price index, which is released this morning, is not the Federal Reserve's preferred gauge of inflation, but remains important to monetary policymakers, not to mention inflation-linked bonds.
U.S. Treasury yields are falling as part of a partial flight to safety.
West Texas Intermediate futures are also giving back ground after nearly eclipsing $59 (U.S.) per barrel on Thursday afternoon.
Canada will also publish February's retail sales at 8:30 a.m. The loonie has been well-bid since the Bank of Canada's interest rate decision, breaking above 82 cents (U.S.) for the first time since late January; poor data could change that in a hurry.
S&P/TSX 60 futures are in the red ahead of the open.
Here's a look at the latest market numbers and other highlights ahead of the trading day.
Futures:
S&P 500 -0.63 per cent; Dow -0.74 per cent; Nasdaq -0.87 per cent
Equities:
Hong Kong's Hang Seng -0.31 per cent
Shanghai composite index +2.2 per cent
Japan's Nikkei -1.17 per cent
London's FTSE 100 -0.76 per cent
Germany's DAX -1.7 per cent
France's CAC 40 -1.19 per cent
Stoxx 600 -1.29 per cent
Commodities:
WTI crude oil (Nymex May) -0.95 per cent at $56.17 (U.S.) a barrel
Natural gas (Nymex May) -0.41 per cent at $2.673
Gold (Comex Jun) +0.58 per cent at $1,204.90 (U.S.) an ounce
Copper (Comex May) +0.05 per cent at $2.769 (U.S.) a pound
Currencies:
Canadian dollar at 82.17 (U.S.), up 0.0012
U.S. dollar index down 0.083 at 97.332
Bonds:
U.S. 10-year Treasury yield 1.8523 per cent, down 0.0383
ECONOMIC INDICATORS:
(8:30 a.m.) Canada consumer price index for March. Consensus is an increase of 0.5 per cent month over month and 1 per cent year over year.
(8:30 a.m.) Canada core CPI for March. Consensus is an increase of 2.1 per cent year over year.
(8:30 a.m.) Canada retail sales for February. Estimated to increase 0.7 per cent from January. Excluding autos, the estimate is an increase of 0.8 per cent
(8:30 a.m.) U.S. CPI for March. Consensus is an increase of 0.3 per cent from February and unchanged year over year
(10 a.m.) U.S. University of Michigan Consumer Sentiment for April. Estimated to be 94.0, an increase of 1.0 from March.
Also: G-20 finance ministers and central bankers meet in Washington
STOCKS TO WATCH:
General Electric Co. slightly bettered analysts' consensus estimate for profits in the first quarter of 2015, though revenues came in light. The firm's oil and gas segment saw sales fall 8 per cent.
Calloway Real Estate Investment Trust is buying the retail real estate developer SmartCenteres for $1.2-billion (Canadian). The company will change its name to SmartREIT after the transaction closes, which is expected to be by the end of May.
After the close on Wednesday, Schlumberger Ltd. posted better than expected earnings on revenues that missed the Street's estimates. The company announced a round of 11,000 layoffs on the heels of 9,000 job cuts announced in January.
After the close on Wednesday, American Express reported a top and bottom line miss, with management citing the lower dollar for its weaker than anticipated performance.
Earnings include: Comerica Inc; First Horizon National Corp; General Electric Co.; Honeywell International Inc; Seagate Technology PLC
ANALYST ACTIONS:
Pembina Pipeline Corp. was initiated with a "neutral" rating at Credit Suisse.
Keyera Corp. was initiated with a "neutral" rating at Credit Suisse.
Trilogy Energy Corp. was rated a new "underperform" at Credit Suisse.
DHX Media Ltd. was upgraded to "buy" from "hold" at TD Securities.