TSX poised to open lower

U.S. futures were lower with the Dow Jones industrial futures down 60 points to 12,296, the Nasdaq futures lost 10 points to 2,318.8 and the S&P 500 futures declined 7.9 points to 1,265.1.

European worries were front and centre amid concerns that banks will struggle to raise much-needed new capital.

Trading in UniCredit SpA, Italy’s largest bank, was suspended for the second day running Thursday after shares tumbled further in the wake of a heavily-discounted share offering. UniCredit is trying to raise €7.5 billion to meet new European requirements for banks to shore up capital reserves.

In Spain, the new conservative government said it expects the country’s banks to come up with additional provisions of up to €50 billion, which amounts to four per cent of Spain’s Gross Domestic Product, in extra provisions on bad property assets.

There were also concerns that the debt crisis is testing confidence in even the region’s biggest economies.

France’s borrowing rates rose slightly in a bond auction on Thursday as investor demand eased.

The majority of bonds sold Thursday were 10-years, which markets eye as a benchmark of investor confidence. Demand for them surpassed the supply but was considerably less than at an auction in December. The yield or interest rate on the 10-years was 3.29%, up from 3.18% last time. In total, €4.02 billion were sold.

European government bond auctions used to be routine affairs.

But investors have been demanding higher yields as markets grow increasingly impatient at the failure of eurozone leaders to come up with a convincing fix for the debt crisis.

Countries that cannot raise money at reasonable rates at such sales must be rescued with bailout packages, and investors have grown concerned in recent months that even countries in the so-called European “core” could join that club.

The latest flight from risk sent oil and metal prices lower.

The February crude contract on the New York Mercantile Exchange declined 55 cents to US$102.67.

The March copper contract on the Nymex dipped three cents to US$3.40 a pound.

Bullion also stepped back with the February contract in New York down $2.10 to US$1,610.60 an ounce.

European markets were firmly in the red with London’s FTSE 100 index down 0.51%, Frankfurt’s DAX slipped 0.76% and the Paris CAC 40 lost one per cent.

Earlier in Asia, Japan’s Nikkei 225 index fell 0.8%, South Korea’s Kospi index lost 0.1% while Australia’s S&P ASX 200 gave up 1.1%.

Hong Kong’s Hang Seng Index rose 0.5%.

Mainland China’s benchmark Shanghai Composite Index lost one per cent to 2,148.45, its lowest level in almost three years. The Shenzhen Composite Index lost 3.5% as more than 100 companies plunged to the daily limit of 10%.

In corporate news, First Quantum Minerals Ltd. (TSX:FM) will be in focus after the Vancouver miner said it is selling its mines in Congo and settling legal claims for US$1.25 billion. The company said Thursday it had struck a deal with with Eurasian Natural Resources Corp. PLC to dispose of its residual claims and assets in the Kolwezi tailings project, and the Frontier and Lonshi mines and related exploration interests.

Australia-listed PanTerra Gold Ltd. has made an all-stock takeover offer for Vancouver-based Novus Gold Corp. (TSXV:NOV), which has two highly prospective copper and gold concessions in the Dominican Republic.