Source: The Canadian Press

The Toronto stock market appeared headed for a flat open Thursday after worries that Greece’s debt crisis will spread to other European countries sparked two days of sharp losses.

U.S. futures also indicated little change as investors wonder if debt problems will upend an economic recovery.

The Dow Jones industrial futures dipped two points to 10,832, the Nasdaq futures added two points to 1,960.5 while the S&P 500 futures edged up 0.9 of a point to 1,164.8.

Greece is trying to tap a US$144-billion aid package from the 15 other countries that use the euro and the International Monetary Fund. The nation needs access to an initial portion of the money by May 19 to cover $11.6 billion in debt payments, or else it will likely default.

Even if Greece gets the money it needs, there are still worries that would be only a temporary fix to a growing debt problem across the continent, and other countries like Portugal and Spain will all eventually need similar rescues.

Meanwhile, the European Central Bank announced Thursday it would leave its benchmark interest rate unchanged at 1%.

Markets are looking to the bank’s press conference later to see if ECB President Jean-Claude Trichet could introduce new anti-crisis measures.

Analysts say the bank could support the financial system by buying government bonds.

Sovereign debt worries carved more than 300 points from the main Toronto index over the last two sessions.

Commodity stocks have suffered as investors have piled into the safe haven status of the U.S. dollar, which has depressed oil and metal prices and currencies.

The greenback continued to show strength Thursday, pushing the June crude contract on the New York Mercantile Exchange down 16 cents to US$79.81 a barrel.

Crude has dropped 10% from an 18-month high of US$87.15 a barrel earlier this week as an escalating debt crisis in Europe undermined confidence in the euro. Commodities priced in dollars, such as oil, become more expensive for investors holding euros as the U.S. currency strengthens.

The Canadian dollar also continued to lose ground after falling about two U.S. cents over the past two sessions. The loonie was down 0.28 of a cent to 96.84 cents US.

The euro continued to plumb 14-month lows, trading Thursday morning at US$1.273, down from US$1.2824 late Wednesday.

Other commodity prices were mixed with June gold on the Nymex ahead $6.70 to US$1,181.70 an ounce while July copper was unchanged at US$3.15 a pound.

Overseas, Asian stocks plunged Thursday as European debt fears continued to rattle markets.

Japan’s Nikkei 225 stock average dived 3.3% for its biggest one-day fall in over a year while China’s Shanghai benchmark sank 4.1%. Japanese markets were closed Monday through Wednesday for holidays.

South Korea’s Kospi dropped 2%, Hong Kong’s Hang Seng retreated 1% and Australia’s benchmark lost 2.2%.

London’s FTSE 100 index slipped 0.1%, Frankfurt’s DAX gained 0.19% while the Paris CAC 40 was ahead 0.58%.

On the corporate front, investors will focus on auto parts giant Magna International Inc. (TSX:MG.A). Its shareholders will now get a chance to end the Stronach family’s absolute control over the global auto parts maker. The company says Stronach Trust has now agreed to let other shareholders vote on eliminating the family’s special rights and adopt a single class of stock.

In earnings news, Air Canada (TSX:AC.B) reported a net loss of $85 million in the first quarter, far lower than the net loss of $400 million from a year ago. The latest quarter includes a $100 million foreign exchange gain. Meanwhile, operating revenues rose to $2.5 billion from just under $2.4 billion.

Canada’s largest telecommunications company, BCE Inc. (TSX:BCE) rang up a $608-million profit in the first quarter, up 61.3% from a year ago. BCE’s overall revenue rose 2.3% to $4.43 billion, getting a boost from revenues at The Source chain of electronics stores that it acquired last year.

And Yellow Pages Income Fund (TSX:YLO.UN), a Montreal-based telephone directories publisher and online media company, reported its net profits fell to $121.8 million in the first quarter from $132.1 million for the same period a year ago.

Revenues were essentially flat at $408 million.

On the economic front, the U.S. Labour Department’s weekly report on initial jobless claims is expected to show fewer people applied for unemployment benefits last week. Economists polled by Thomson Reuters predict claims fell to 440,000 last week, from 448,000 a week earlier.