Source: The Canadian Press

The Toronto stock market appeared headed for another negative session on Wednesday as oil prices backed off amid signs of rising inventories and worries about an economic recovery.

New York futures also indicated a negative session amid continuing investor concern that Europe’s debt crisis won’t be contained to Greece.

The Dow Jones industrial futures moved down 26 points to 10,866, the Nasdaq futures declined 5.75 points to 1,963.75 while the S&P 500 futures were off 2.6 points to 1,169.8.

Oil prices fell below US$82 a barrel after a report showed U.S. crude supplies rose more than expected last week. Benchmark crude for June delivery was down $1.39 to US$81.35 a barrel after the American Petroleum institute reported that U.S. crude inventories rose three million barrels last week. Analysts had expected an increase of 1.5 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

Inventories of gasoline and distillates also rose, the API said.

Oil tumbled 4% on Tuesday on investor fears a US$144-billion bailout for Greece won’t keep the debt crisis from spreading to other European countries like Portugal and Spain. Those worries also inflicted sharp losses on stock markets, where the main Toronto index fell 166 points while the Dow industrials fell 225 points.

There are also concerns about the Greek government’s ability to push through massive austerity measures in return for the cash. Wednesday’s general strike in Greece is unlikely to assuage concerns that the government led by Prime Minister George Papandreou — however sincere — will get the popular backing it needs.

“Mass protests and strike action in Greece will bring the country to a halt this afternoon, doing sentiment in global markets no favour,” said Tim Hughes, head of sales trading at IG Index.

The Canadian dollar was down 0.13 of a cent to 97.43 cents US. The loonie lost 1.39 cents US Tuesday as the European debt crisis sent investors scurrying to the safe haven status of the U.S. dollar. The euro hit a 13-month low on Tuesday and fell further Wednesday morning to US$1.2944.

Other commodities were weak with June gold on the Nymex down 30 cents to US$1,168.90 an ounce and July copper eased six cents to US$3.12 a pound.

Earlier in Asia, sovereign debt worries sent Australia’s index skidding 1.3%, while Indonesia’s main market dropped 2.6% and Taiwan sank 3%. China’s benchmark Shanghai index, meanwhile, recovered early losses to rise 0.8%.

Markets in Japan and South Korea were closed for holidays.

London’s FTSE 100 index was down 0.53%, the Frankfurt DAX shed 0.3% while the Paris CAC 40 declined 0.34%.

Meanwhile, it was another heavy earnings day for Canadian companies.

Oil and pipeline distributor Enbridge Inc. (TSX:ENB) reported its net earnings in the first quarter fell 39% to $342 million or 93 cents a share. That compares with net profits of $558 million or $1.54 a share last year, when the company booked gains from an asset disposal.

Excluding one-time gains and losses, adjusted earnings rose to $318 million from $268 million.

Agricultural products giant Agrium Inc. (TSX:AGU) posted Wednesday a first-quarter net loss of US$7 million, dragged down by $68 million in hedging losses, but improved from a year-ago loss of $60 million.

Torstar Corp. (TSX:TS.B), owner of the Toronto Star newspaper and other dailies and weeklies, reported a net profit of $7.4 million or nine cents a share in the first quarter as cost cutting helped drive efficiencies at its newspaper and digital operations. The showing reversed a loss of $21.4 million or 27 cents a share for the same year-ago period.

The media company said revenue fell to $334.2 million from $339 million for the January to March quarter, but that reflected currency translation impacts that dropped revenue by $10.1 million.

Penn West Energy Trust (TSX:PWT.UN) reported Wednesday a first-quarter profit of $77 million, reversing a year-earlier loss of $98 million on a big improvement in the price of oil.

IE