Business

The Toronto stock market headed for a lower open Wednesday as weak corporate performances reminded traders of the fragile state of the economic recovery.

The Canadian dollar fell 0.25 of a cent to 100.79 cents US amid falling prices for oil and copper.

U.S. futures also backtracked with the Dow Jones industrial futures down 26 points to 13,173, the Nasdaq futures gave back eight points to 2,766 and the S&P 500 futures declined 3.9 points to 1,408.6.

Resource stocks will likely lead the TSX lower after mining giant BHP Billiton reported that its annual profit plunged 34.8 per cent from a year ago to US$15.4 billion as a slowdown in global economic growth led to weaker prices for its key commodities.

Revenue for the year was up 0.7 per cent to $72.2 billion.

In addition, Chinese car maker Geely Automobile Holdings Ltd. said first-half profit was flat and trading conditions in the world's biggest auto market in the second half of 2012 "are expected to be more challenging."

Adding to signs of a global slowdown in growth, Japan posted a 517.4 billion yen (US$6.5 billion) trade deficit in July, compared with a surplus the year before, as exports fell eight per cent. Exports of autos and electronics by Asia's second-biggest economy have been hurt by the strengthening yen as well as weak demand from Europe.

Demand concerns pushed the October crude price on the New York Mercantile Exchange down 22 cents to US$96.62 a barrel.

Copper gave back some of Tuesday's eight-cent runup, down a penny to US$3.44 a pound.

December bullion slipped $1.40 to US$1,641.50 an ounce.

The TSX edged up 41 points Tuesday on hopes that the European Central Bank will address the problem of high borrowing costs for heavily indebted countries such as Spain by buying government bonds.