Stocks may open lower Thursday after the U.S. trade gap expanded unexpectedly to US$62.32 billion in February. U.S. exports rose 2%, but imports increased 3.1%.

Here at home, Statistics Canada said Canada’s trade surplus with the world jumped to $4.9 billion in February, from a revised $2.8 billion in January. This was the largest monthly surplus since May 2007. ,

StatsCan noted increases in all export sectors combined with a decrease in imports.

The Canadian dollar opened at US98.30¢, up 0.16 cent, as the U.S. dollar fell to new lows against the euro.

In today’s M&A news, Canada’s federal government on has blocked the $1.3 billion sale of the space technology division of Vancouver-based MacDonald, Dettwiler and Associates to a U.S. firm.

Agrium Inc. is buying a 70% interest in Common Market Fertilizers S.A., a European fertilizer distribution company with annual sales of more than US$500 million. Agrium said the price is $16 million plus working capital of $50 million.

In other M&A news, The Wall Street Journal reported that Yahoo and AOL are nearing a deal to merge in a move aimed at thwarting Microsoft’s effort to acquire Yahoo.

In earnings news, Forzani Group Ltd. said it earned $47.5 million in the year ended February 3, up from $35.2 million in the previous year, as revenue increased to $1.33 billion from $1.26 billion.

Corus Entertainment Inc. reported consolidated net income was $35.4 million in the second quarter ended Feb. 29, up from $19.5 million a year earlier. The latest quarter benefited from $13.2 million in recoveries related to income tax changes.

The U.S. retail sector will be in focus as retailers will be releasing same-store sales figures Thursday.

In other news, the U.S. Labour Department reported today that applications for jobless benefits totalled 357,000 last week, down by 53,000 from the previous week.

Even with last week’s improvement, the four-week average for claims rose by 2,500 to 378,250, the highest level since early October 2005.

Crude oil was up 56¢ at US$111.43 a barrel after settling up US$2.37 at a record $110.87 Wednesday on word of falling American oil inventories.

Tokyo’s Nikkei index closed with a decline of 1.3%, while the Hong Kong Hang Seng edged up 0.8%.

London’s FTSE 100 index was down 0.75% after the Bank of England trimmed its policy interest rate. The German DAX was down 1.3% and the Paris CAC-40 lost 1.4%.

The Bank of England cut its benchmark lending rate a quarter point to 5% amid gloomy data on house prices, but the European Central Bank held its key interest rate at 4% as it focuses on record inflation.

Gold and commodities kept Toronto markets steady Wednesday, while U.S. markets were hit by record oil prices.

The S&P/TSX composite index closed up 23.02 points, or 0.17%, at 13,750.55.

Canaccord Capital Inc. shares rose 93¢, or 8.99%, to close at $11.28 on the news it is buying back about $138 million in ABCP from small investors.
The junior S&P/TSX Venture composite index closed up 15.97 points, or 0.63%, at 2561.87.

In New York, the Dow Jones industrial average closed down 49.18 points, or 0.39%, to end at 12,527.26. The S&P 500 fell 11.05 points, or 0.81%, to close at 1,354.49.

Meanwhile, the tech-heavy Nasdaq composite index closed down 26.64 points, or 1.13%, at 2,322.12.