Source: The Canadian Press

The Toronto stock market looked set for a weaker open as commodity prices drifted lower despite data showing stronger than expected growth from China.

China said Thursday its gross domestic product grew 11.9% in the first quarter from a year earlier.

It also reported consumer prices rose 2.2% over a year earlier, well below the government’s ceiling of 3% for the year. Such a low reading eases pressure on Beijing to hike interest rates and slows the third-largest economy’s rebound from the global slump.

The Canadian dollar was down 0.07 of a cent to 100.01 cents US after closing above parity with the greenback on Wednesday for the first time since May 2008.

U.S. futures also indicated a lower open after strong earnings reports from chip giant Intel and JPMorgan Chase on Wednesday persuaded investors that the American economic recovery is on track and sent indexes in Toronto and New York sharply higher.

The Dow Jones industrial futures declined 16 points to 1,049, the Nasdaq composite futures were down five points to 2,021.5 and the S&P 500 futures were off 2.4 points to 1,204.2.

The May crude contract on the New York Mercantile Exchange was 28 cents lower to US$85.56 a barrel after data showing a surprising decline in U.S. inventories sent oil up almost US$2 on Wednesday.

The June bullion contract on the Nymex was down $5.90 to US$1,153.70 an ounce while May copper shed three cents to US$3.58 a pound.

Strong demand from China has sent oil and metal prices sharply higher over the last year.

Crude leaped to above US$87 last week after trading between $69 and $84 for the previous nine months.

Meanwhile, in another good sign for the U.S. economy, shipping giant UPS reported a 33% increase in first-quarter earnings per share. The company also raised its guidance Wednesday, saying it expects full-year 2010 earnings per share to climb 32% to 43%. UPS said revenue increased 7% in the quarter. The results were announced nearly two weeks ahead of the company’s scheduled earnings release date.

Google Inc. will report its latest financial results after the market close.

During the morning, investors will take in the latest reading on U.S. jobless insurance claims.

Economists polled by Thomson Reuters, on average, forecast the number of people seeking unemployment benefits for the first time fell to 440,000 last week from 460,000 a week earlier.

A separate report is expected to show industrial production grew in March for the ninth straight month. Unlike the jobs or housing market, the manufacturing sector has shown steady, consistent growth as the economy emerges from recession.

Economists expect production at the nation’s factories, mines and utilities rose 0.3% last month.

Two regional reports on manufacturing are also due out. The Empire State and Philadelphia Federal Reserve manufacturing indexes will provide snapshots of regional manufacturing activity.

BP PLC is facing a revolt from major shareholders over a controversial oil sands project in Canada. Institutional and individual investors are expected to back a resolution at the company’s annual general meeting Thursday in London calling for a review of the company’s plans to extract oil from the oilsands in northeastern Alberta. BP (NYSE:BP) is involved in a joint venture with Calgary-based Husky Energy (TSX:HSE).

In other corporate news, Lorus Therapeutics Inc. (TSX:LOR) said Wednesday it will need an infusion of cash as it reported a loss of $1.3 million in its latest quarter. The drug developer said its does not have enough cash for its current planned spending for the next 12 months and will require new investment.

Mullen Group Ltd. (TSX:MTL) has won a major contract with Suncor Energy Inc. (TSX:SU) related to tailings management at its oilsands mining operations. Financial terms of the deal were not immediately available for the deal that Mullen called a “significant project.”

A Quebec-based structural steel firm, ADF Group (TSX:DRX), says it’s witnessing an increase in bidding activity in Canada and certain parts of the U.S. market. At the end of January, which marked the end of ADF’s financial year, the company’s order backlog was $116 million — up 17%.

In Asia, Japan’s benchmark Nikkei 225 stock average led gainers, rising 0.6%, Hong Kong gained 0.5% while Singapore added 0.3%.

Australia rose 0.1% while China, India and Malaysia were little changed.

London’s FTSE 100 index rose 0.11%, Frankfurt’s DAX was off 0.06% while the Paris CAC 40 added 0.07% amid severe air travel problems.