Stocks were poised to drop sharply Wednesday, with investors reacting to a tumble in stocks overseas day before the U.S. Thanksgiving Day holiday.

In today’s economic news, Canadian retail sales edged down 0.2% in September to an estimated $34.4 billion, due mainly to a decline in sales by new car dealers, Statistics Canada reported. This is the third decrease in overall sales since May 2007.

The Canadian dollar opened down three-quarters of cent at US$1.012, even as the greenback hit a record low versus the euro.

South of the border, the U.S. Conference Board reports on leading indicators and the University of Michigan offers its reading on consumer sentiment.

Oil prices briefly reached a high above US$99 a barrel in overnight electronic trading. Crude futures had pulled back in pre-market electronic trading on the New York Mercantile Exchange, slipping 64¢ to US$97.39 a barrel.

The U.S. Energy Department’s inventory report is scheduled to be released at 10:30 ET.

In today’s earnings news, agricultural equipment manufacturer Deere said its net income rose 52% as demand surged. The company added it expects strong equipment sales for the current quarter.

Late Tuesday, U.S. retailer Limited Brands reported a 48% decline in earnings and cut its current quarter earnings estimate, blaming a challenging retail environment.

In Asian trading, Japan’s Nikkei stock average sank 2.46%, while Hong Kong’s Hang Seng index dropped 4.15%.

In European trading, the UK’ FTSE 100 fell 1.38%, Germany’s DAX index fell 1.70%, and France’s CAC-40 fell 1.87%.

The Toronto stock market shook off some of Monday’s losses on Tuesday, getting a lift from strong commodity prices.

The S&P/TSX composite index jumped 111.53 points, or 0.84%, to close at 13,459.77.

The junior S&P/TSX Venture composite index added 16.08 points, or 0.56%, to finish at 2,870.91.

In New York, U.S. stocks rebounded from Monday’s sharp losses as surging oil prices lifted Exxon Mobil and offset falls in financial shares on new concerns about the housing market.

The Dow Jones industrial average was up 51.70 points, or 0.40%, at 13,010.14. The S&P 500 was up 6.43 points, or 0.45%, at 1,439.70. The Nasdaq composite index was up 3.43 points, or 0.13%, at 2,596.81.