TSX little changed after central bank concerns sends market tumbling
The Toronto stock market was lower at mid-morning Wednesday, adding to a sharp loss in the previous session amid worries that central banks may withdraw efforts to help the global economic recovery.
The SP/TSX composite index declined 21.99 points to 12,201.58, weighed down primarily by the energy and telecom sectors, following a 159-point slide on Tuesday.
The Canadian dollar lost early momentum to move down 0.03 of a cent to 98.12 cents US.
U.S. indexes also advanced but were well off early highs. The Dow shed most of a triple-digit advance to move up 17.43 points to 15,139.45, the Nasdaq was down 2.42 points to 3,434.53 and the SP 500 index climbed 1.59 points to 1,627.72.
Commodity prices were higher but the energy sector lost 0.41 per cent as the July crude contract on the New York Mercantile Exchange gained 54 cents to US$95.92 a barrel. Canadian Natural Resources (TSX:CNQ) gave back 43 cents to C$29.10.
July copper was up two cents to US$3.21 per pound after worries about Chinese growth helped send the metal down 17 cents over the past four sessions. Uncertainty about China’s recovery has weighed on markets following weekend data showing exports, retail sales and other indicators weaker than expected.
The TSX base metals sector slipped 0.16 per cent and Teck Resources (TSX:TCK.B) shed 38 cents to C$24.38.
Cliffs Natural Resources Inc. (NYSE:CLF) says it is calling a temporary halt to its environmental assessment activities for a major chromite mine in the Ring of Fire region in remote northern Ontario. The company says the suspension is due to delays related to the environmental process, land surface rights and negotiations with the Ontario government about building infrastructure in the fly-in-only region. Its shares were up 62 cents to US$18.12.
The telecom sector was a major weight as BCE Inc. (TSX:BCE) dropped 89 cents to C$44.21.
The gold sector was the leading advancer as August bullion on the Nymex gained $5.60 to US$1,382.60 an ounce. Barrick Gold Corp. (TSX:ABX) improved by 36 cents to C$20.35.
The TSX tumbled Tuesday after Japan’s central bank failed to deliver expected measures to ease bond market volatility. Instead, the bank only upgraded its economic outlook.
There has also been concern about whether the U.S. Federal Reserve will ease its monetary stimulus. The Fed has been buying bonds to push down market interest rates, which has helped fuel a strong rally on U.S. markets that has gone up practically non-stop since late last year.
However, that rally has bypassed the TSX, which has been depressed by a mining sector weighed down by falling commodity prices amid a weak global economic recovery. Gold miners have also been a major weight as lower inflation concerns have depressed gold stocks and bullion prices.
Energy stocks have suffered because of demand concerns and worries about the future of major pipeline projects such as Keystone XL which would move greater amounts of oilsands crude to American markets. And financials have weakened amid a slowing Canadian economy in general and a housing sector past its peak.
The TSX is down around 200 points year to date and finished lower in seven of the past eight sessions.
In corporate news, Hudson’s Bay Co. (TSX:HBC) lost $80.7 million in the latest quarter including discontinued operations, down from $129.7 million in the first quarter of 2012. Revenue rose by 4.2 per cent to $884 million. Hudson’s Bay stores in Canada had a 7.6 per cent same-store sales growth, offset by a 1.4 per cent decline at Lord Taylor stores in the United States and its shares gained 54 cents to $16.70.
Dollarama Inc. (TSX:DOL) says the addition of 85 stores over the past year and strong growth at established locations helped push up revenue by 12 per cent to $448 million. The Montreal-based discount chain also reported profit of $45.6 million or 62 cents per share, which missed estimates of 67 cents and its shares fell $3.11 to $69.47.
European bourses turned lower as London’s FTSE 100 index moved down 0.21 per cent, Frankfurt’s DAX dipped 0.64 per cent while the Paris CAC 40 was down 0.15 per cent.
Earlier in Asia, Tokyo’s Nikkei 225 shed 0.2 per cent, after spiking up nearly five per cent Monday after the prime minister promised new tax cuts. Markets in China, Hong Kong and Taiwan were closed for a holiday. Seoul’s Kospi shed 0.6 per cent while Sydney’s ASX SP 200 fell 0.7 per cent.
Article source: http://www.canada.com/little+changed+after+central+bank+concerns+sends+market+tumbling/8514429/story.html