TSX follows commodities prices lower, slumps for second consecutive day

TORONTO -- The Toronto stock market was in its second day of a post-Christmas slump Wednesday as Canada's main index followed lower commodity prices.

See Full Article

At mid-afternoon, the S&P/TSX index was off 90.60 points at 13,155.15 after having lost 64 points Tuesday when traders returned after the Boxing Day holiday.

On commodity markets, the February contract for benchmark oil was down $1.30 at US$36.57 a barrel and the energy sector was the leading decliner on the TSX, down 2.61 per cent.

Elsewhere in commodities, February natural gas retreated 16 cents to US$2.21 per mmBtu, while February gold fell $8 to US$1,060.00 an ounce.

The Canadian dollar also fell after several sessions of marginal gains, down 0.31 of a cent at 72.03 cents U.S.

New York markets were also lower on weak volume ahead of the New Year's Day holiday on Friday, with energy companies also leading the slide. The Dow Jones was down 45.85 points at 17,675.13, while the broader S&P 500 declined 6.70 points to 2,071.66 and the Nasdaq lost 20.50 points to 5,087.44.

"Volumes are extremely light, both on the equities and fixed-income side, so you have to take any movements that occur on a daily basis right now with a bit of a grain of salt," said Jason Pride, director of investment strategy at Glenmede Trust.

In corporate news, Bridgestone announced late Tuesday that it is bowing out of the bidding war for Pep Boys (NYSE:PBY), saying it won't make a counter-offer to top a roughly US$1 billion bid for the auto parts and services retailer from activist investor Carl Icahn. The news sent Pep Boys down 53 cents, or 2.82 per cent, to US$18.41.

Elsewhere, stock in Weight Watchers International (NYSE:WTW) posted a hefty advance after announcing an advertising campaign featuring Oprah Winfrey, who owns a 10 per cent stake in the company. The stock added $4.56 to US$29.93.

In Europe, trading volumes were low on the last full day of the year ahead of the New Year's holiday. Many European markets will be open for only a half day Thursday.

Germany's DAX fell 1.1 per cent, while France's CAC 40 lost 0.5 per cent. Britain's FTSE 100 slipped 0.6 per cent.

Markets in Asia were mixed. Japan's Nikkei rose 0.3 per cent, while South Korea's Kospi dipped 0.3 per cent. Hong Kong's Hang Seng fell 0.5 per cent, while the Shanghai Composite added 0.3 per cent.



Advertisements

Latest Economic News

  • BlackBerry expecting US$940 million in Qualcomm dispute resolution

    Economic CTV News
    WATERLOO, Ont. -- BlackBerry Ltd. (TSX:BB) says it will receive US$940 million from Qualcomm by May 31 to settle a dispute over royalty payments. An arbitrator sided with BlackBerry in April, and announced an interim award of US$814.9 million plus additional amounts for interest and legal fees. Source
  • World shares weaken ahead of G7 meeting; oil bottoms out

    Economic CTV News
    HONG KONG -- World stock markets weakened Friday as investors awaited the upcoming G-7 summit and oil prices rebounded somewhat as markets shook off initial disappointment over a production cut deal. KEEPING SCORE: European shares opened lower, with France's CAC 40 down 0.8 per cent to 5,297.13 and Germany's DAX lost 0.5 per cent to 12,561.85. Source
  • OPEC decision stabilizes oil prices, but for how long?

    Economic CBC News
    In one of the least surprising OPEC meetings in a while, members of the cartel of oil-exporting countries and their non-member allies agreed to extend oil production cuts on Thursday, which will support the price of oil and should continue to help pave the way for Alberta's economic recovery. Source
  • The case for BlackBerry at $45 US a share

    Economic CBC News
    BlackBerry Ltd. shares have been on a hot streak — rising more than 60 per cent in recent weeks — and one technology analyst thinks some of the company's new products have the potential to help push the stock to $45 US in three years. Source
  • Malicious hackers say they demanded $50,000 ransom for stolen Bell data

    Economic CBC News
    A pair of malicious hackers say they demanded that Bell pay a $50,000 US ransom to prevent stolen customer data from being shared online, according to a person claiming responsibility for the theft. That person — who communicated with CBC News via encrypted chat using the handle "exodus" — says a ransom email was sent to Bell on May 5, detailing the extent of the breach and the thieves' terms. Source
  • Kinder Morgan announces final investment decision on Trans Mountain pipeline

    Economic CTV News
    VANCOUVER -- Kinder Morgan says it will proceed with the $7.4-billion Trans Mountain pipeline expansion as long as it secures satisfactory financing for the project through its initial public offering. The Texas-based company, in conjunction with its indirect subsidiary Kinder Morgan Canada, announced on Thursday its final investment decision on the project, which is conditional on the successful completion of the IPO. Source
  • Amazon opens first brick and mortar New York bookshop

    Economic CTV News
    Online retail giant Amazon on Thursday opened its first brick and mortar bookstore in New York, selling a limited range of its highest-rated books and letting customers browse products as in times gone by. Amazon, which launched as an online bookseller in 1995 but which now sells everything from designer clothes to groceries, bided its time before venturing into the US cultural capital. Source
  • Ontario threatens its own protectionism in fight against Texas Buy American bill

    Economic CTV News
    TORONTO - Ontario has hired lobbyists in Texas and is threatening protectionist measures of its own as it tries to convince state officials not to pass a Buy American bill. Premier Kathleen Wynne claimed victory last month after a successful Ontario push to stop similar provisions in New York state. Source
  • Alberta Energy Regulator to reconsider Suncor tailings plan it rejected

    Economic CTV News
    CALGARY -- Alberta's energy watchdog has agreed to reconsider its rejection of a plan by oilsands giant Suncor to clean up its tailings ponds. The Alberta Energy Regulator denied the Calgary-based company's applications in March, saying they did not satisfy requirements and a new proposal was needed. Source
  • Bank CEOs say Home Capital issues not widespread

    Economic CTV News
    TORONTO -- The CEOs of two of Canada's biggest banks say liquidity troubles at mortgage lender Home Capital are not indicative of a broader problem, but they are monitoring their mortgage portfolios in light of concerns about high house prices. Source