Futures trading is weak Thursday morning in a reaction to an announcement from Nokia that it expects a decline in third-quarter sales. After the news came out, tech share prices fell heavily in Europe.

The Nokia announcement was followed by a mixed report by IBM. Big Blue’s second-quarter profit rose to US$1.7 billion. Revenue rose 10% to $21.6 billion, but this was due to currency fluctuations. Otherwise the increase would have been 3%. IBM shares are down in Europe.

To top if off, Apple Computer’s third-quarter profit fell by 41% to US$19 million, though revenue rose eight per cent to $1.5 billion.

In economic news, the U.S. Labour Department is reporting a better job picture for last week, though economists warn the improvement is in line with the usual bump in summertime employment. Initial jobless claims fell by 29,000 to 412,000. The four-week average, which smooths out weekly fluctuations, declined by 3,500 to 424,000.

In a separate release, the U.S.Commerce Department says home-building activity increased 3.7% to 1.803 million annual rate in June. This followed an increase of 6.8% in May.

Here at home, Statistics Canada is reporting that foreign investors added a further $4.7 billion of Canadian securities to their holdings in May. That’s the fourth straight month of large investment. They invested in bonds and equities — the first significant acquisition of equities in 2003. Meanwhile, Canadian investors resumed their purchases of foreign equities after a five-month absence.

Air Canada is in talks with investors to raise $700 million in equity. The Royal Bank is extending its American presence with a $100-million purchase of a home-mortgage unit of Sterling Bancshares, a company which is active in 16 American states.

Overseas stock markets are down. At midday, London’s FTSE 100 index is down 0.8%. The German DAX has fallen 1.6%. The Paris CAC-40 is down 1%.

Asian stocks retreated overnight, with Tokyo blue chips dropping 2.4 per cent as investors sold tech In Tokyo, the Nikkei Stock Average fell 237.11 points to 9,498.86. Though, Hong Kong shares dropped 1.1%.

In business news, Sanford Weill, Citigroup Inc.’s 70-year-old chairman and chief executive, put an end to long-simmering questions about succession at the world’s largest financial-services empire by tapping one of his oldest confidants, Charles Prince, to become the next CEO.