The Canadian Press

Malcolm Morrison

North American markets looked to open little changed Tuesday after data showed the U.S. economy grew at an annual rate of 2.8% during the third quarter.

That compares with a previous government estimate of 3.5%.

The new reading was a tad weaker than the 2.9% revised growth rate economists expected.

Shortly after the data came out the Dow Jones industrial futures were six points higher to 10,428, the Nasdaq futures slipped 1.5 points to 1,789.75 while the S&P 500 futures added one point to 1,104.8.

The Canadian dollar was down 0.13 of a cent to US94.58¢.

There were also concerns about bank capital after China’s central bank warned commercial banks to control their lending.

The warning comes ahead of the Bejing government’s annual economic planning meeting and could foreshadow more measures to reduce liquidity in the months ahead.

However, the financial news was better in Canada where Bank of Montreal (TSX:BMO) reported that its fourth-quarter net income rose 16% from year ago levels to $647 million. Earnings per share were $1.11, compared with $1.06 a year earlier.

Total revenue in the quarter increased by 6.3% to $176 million while its provision for credit losses decreased to $386 million during the quarter, down $79 million from last year.

Toronto energy stocks could be under selling pressure as the January crude contract on the New York Mercantile Exchange declined 32¢ to US$77.24 a barrel.

The December bullion contract on the Nymex rose $3 to US$1,167.70 an ounce while December copper slipped 2¢ to US$3.12 a pound.

Investors are also anxious to see the latest reading on American consumer confidence.

Consumer spending accounts for more than two-thirds of all economic activity and a rebound in shopping is considered vital for a strong recovery and the data from the Conference Board is expected to show consumers are still nervous about the economy.

The group’s Consumer Confidence Index for November was likely unchanged at 47.7, compared with October. A reading above 90 would signal the economy is on solid footing.

Investors will also get a reading on home prices Tuesday. The S&P/Case-Shiller home price index is expected to show prices declined 9% in 20 of the largest U.S. metropolitan markets in September. Prices declined 11.3% a month earlier.

A slowing pace of price declines would provide further evidence that the housing market is beginning to recovery from a collapse that helped push the economy into recession.

An upbeat report on existing home sales in October helped stock markets finish higher on Monday.

The National Association of Realtors said October home sales rose more than 10%, easily topping the 1.4% increase predicted by economists.

Overseas, the warning from the Chinese central bank sent the Shanghai index tumbling 3.5% — its biggest retreat in three months — as investors fretted over the warning. The index had been up 11.4% so far this month.

Elsewhere in Asia, Hong Kong’s Hang Seng index slid 1.5% while Japan’s Nikkei 225 stock average dropped 1%.

London’s FTSE 100 index climbed 0.24%, Frankfurt’s DAX edged up 0.1% while the Paris CAC 40 was flat.