The former Toronto Stock Exchange home in Toronto, August 18 2011. THE CANADIAN PRESS/Aaron Vincent Elkaim

TORONTO - The Toronto stock market headed for a sharply lower open Thursday amid growing worries about a slowing global economy.

Resource stocks will lead declines as commodity prices gave up ground after the U.S. Federal Reserve signalled conditions don't warrant another round of economic stimulus right now. And traders were braced for more data from China showing the world's second-largest economy slowing faster than thought.

Sliding prices for oil and copper helped push the Canadian dollar down 0.37 of a cent to 97.68 cents US.

U.S. futures also signalled selling pressure at the open as the Dow Jones industrial futures lost 87 points to 12,449, the Nasdaq futures were down 14.5 points to 2,547 and the S&P 500 index futures dropped 10.3 points to 1,326.

Demand worries pushed the August crude contract on the New York Mercantile Exchange down $1.23 to US$84.58 a barrel.

Crude has plummeted from $106 in May amid expectations that a global slowdown led by Europe, the U.S. and China will undermine oil demand.

Copper prices slid five cents to US$3.39 a pound while bullion gave back $12.70 to US$1,563 an ounce.

There had been hopes that the minutes of the most recent Federal Reserve meeting would indicate the Fed may engage in a third round of securities purchases aimed at increasing the supply of money in the economy, so-called quantitative easing.

Market-watchers concluded that meant no likely action at the Fed’s next meeting July 31-Aug. 1.

There was also a degree of suspense a day before the release of the latest Chinese economic growth data.

Data are expected to show growth in the three months ending in June fell as low as 7.3 per cent, down from the previous quarter’s nearly three-year low of 8.1 per cent. That is in line with this year’s official 7.5 per cent target. But revenues for companies in construction, shipbuilding and export manufacturing are down by up to half compared with a year ago.

The slowdown is a setback for economies around the world that were looking to China to drive demand for exports and support global growth.

European bourses were also negative with London's FTSE 100 index down 1.1 per cent, Frankfurt's DAX lost 0.8 per cent and the Paris CAC 40 dropped 0.5 per cent.

An unexpected quarter-point rate cut by the South Korean central bank added to concerns about growth, although the Bank of Japan left its benchmark lending rates unchanged after a two-day policy meeting on Thursday.

Asian shares fell generally. Japan’s Nikkei 225 index fell 1.5 per cent while Hong Kong’s Hang Seng plunged two per cent.

On the earnings front, Corus Entertainment Inc. (TSX: CJR.B) says its third-quarter net income was $42.2 million, or 52 cents per share compared with $40.3 million or 49 cents a year earlier, excluding discontinued operations. Revenue fell to $204 million in the three months ended May 31, down from $211.8 million in the third quarter of fiscal 2011.

Cogeco Cable Inc. (TSX:CCA) says its third-quarter profit from continuing operations edged up to $53. 2 million or $1.09 per share. That was five cents per share below a consensus estimate compiled by Thomson Reuters. The company also lowered one of its 2012 performance targets but said it expects to achieve its financial objectives with competitive marketing and cost controls.

Expectations are modest for second quarter corporate earnings.

U.S. companies started reporting second-quarter results this week, with aluminum giant Alcoa reporting it beat reduced expectations.

Investors were dismayed when chip maker Advanced Micro Devices said Tuesday that weaker sales in China and Europe led to an 11 per cent drop in revenue in the April-to-June period. The company had previously forecast a gain of three per cent. J.P. Morgan and Google report results later this week.

News from © The Canadian Press, 2012