U.S. stock futures fell Thursday, even as central bankers in Europe delivered steep cuts in the cost of borrowing.

The Bank of England slashed its benchmark interest rate by one-and-a-half percentage points to 3%, while the European Central Bank and the Swiss National Bank both lowered rates by half a point.

Here at home, Prime Minister Stephen Harper will meet with bank and insurance executives in Toronto to discuss the financial downturn that has rocked economies around the world.

Also on the Canadian economic calendar, municipalities issued $6.5 billion in building permits in September, up 13.4% following an 11.7% decline in August. September’s increase was the result of gains in all three components of the non-residential sector, Statistics Canada said.

On the U.S. economic calendar, non-farm business productivity rose 1.1%, at an annual rate, in the third quarter, the U.S. Labour Department said Thursday. Economists had expected only a 0.4% increase in productivity, which is defined as output per unit of labour.

Meanwhile, initial claims for jobless benefits fell 4,000 to a seasonally adjusted 481,000 in the week ended Nov. 1, the Labour Department said. Economists surveyed had expected no change in the number claims filed during the week.

In today’s earnings news, investment dealer Canaccord Capital Inc. suspended its dividend while reporting a net loss of $5.4 million in the second quarter, down from year-ago earnings of $15.3 million. Canaccord said revenue was down 30% at $110.8 million.

GMP Capital Trust said it is cutting distributions by more than half, eliminating 37 employees and trimming senior executive salaries by 10%. The firm said net income was $6.9 million in the third quarter, down 82% compared with the same period in 2007. Revenue dropped 43% to $74.8 million.

Tech-bellwether Cisco Systems said late Wednesday that current-quarter sales may decline by 5% to 10%.

In commodities news, oil futures fell 69¢ to US$64.61 a barrel.

Overseas, the Nikkei 225 fell 6.5% in Tokyo, while Hong Kong’s Hang Seng index closed with a loss of 7.1%.


In Europe, stocks were lower midday following the rate cut announcements. London’s FTSE 100 index was down 2.9%, while the German DAX is down 3.4% and the French CAC-40 fell 4%.

The Toronto Stock Exchange’s main index closed lower on Wednesday with all but one of major sectors posting losses.

The S&P/TSX composite index closed down 229.38 points, or 2.27%, at 9,887.20.

The retreat followed a 4% rise on Tuesday and a 5% rise last week.

The junior S&P/TSX Venture composite index fell 23.85 points, or 2.45%, to close at 951.42.

In New York, U.S. stocks plunged a day after Barack Obama’s victory in the U.S. presidential election, as a fresh batch of dismal data renewed worries about the
health of the U.S. economy.

The Dow Jones industrial average slid 486.01 points, or 5.05%, to 9,139.27. The S&P 500 Index plunged 52.98 points, or 5.27%, to close at 952.77. The Nasdaq composite index fell 98.48 points, or 5.53%, to 1,681.64.

IE