Markets in Canada’s biggest centre opened lower on Tuesday, with energy stocks stung by a drop in oil prices overnight and investor sentiment hurt by weak trade data out of China.
The S&P/TSX composite index dipped 41.86 points to open a short week at 13,922.50
The Canadian dollar slid 0.28 cents at 76.67 cents U.S.
Equity markets in Canada were shuttered Monday for Thanksgiving
Bombardier Inc said on Friday it is in advanced discussions to sell its new CSeries jet to airlines in North America, without identifying the prospective buyers. The sources said Bombardier was pitching Southwest Airlines Co and American Airlines Group Inc, as well as similar airlines. One source said Bombardier was also pushing to sell the jets in China.
Bombardier shares gained four cents, or 2.4%, to $1.69.
Poland top refiner, the state-controlled PKN Orlen, said it has launched takeover bids for Canada's Kicking Horse Energy and U.S. firm FX Energy, worth a total of over $300 million. PKN said it will offer Kicking Horse's shareholders $4.75 for each share in an all-cash deal, valuing the firm's equity at $293 million, and putting the enterprise value at $356 million
Kicking Horse shares jumped $1.45, or 44.8%, to $4.69.
Canaccord Genuity cut the rating on Canadian National Railway to hold from buy, saying although volume growth will be better, recovery may be slow.
CN shares faded $1.46, or 1.8%, to $78.97.
ON BAYSTREET
The TSX Venture Exchange 3.71 points to 555.97.
Seven of the 13 TSX subgroups were lower, primarily metals and mining, down 5%, energy, losing 1.5%, industrials, off 1.3%.
The half-dozen gainers were led by consumer staples, up 1.1%, consumer discretionaries, better by 0.8%, and information technology, up 0.7%.
ON WALLSTREET
U.S. stocks traded mixed Tuesday, as some gains in oil prices offset fresh indications of slowdown in China's economy, amid key third-quarter earning reports.
The Dow Jones industrial average fell back 26.76 points to begin Tuesday at 17,110.18, with United Technologies leading decliners and UnitedHealth the greatest advancer.
The S&P 500 dipped 5.32 points to 2,012.14, with industrials leading all 10 sectors lower.
The NASDAQ index lost 12.24 points to 4,826.40.
Johnson & Johnson reported earnings that beat but missed on revenue. Separately, the firm announced a $10-billion U.S. share repurchase.
S&P 500-listed corporations are expected to post a 5.3% decline in third quarter 2015 earnings growth, the first third-quarter decline in six years, according to consensus data from S&P Capital IQ. However, excluding the energy sector drag of a sharp negative 65.6%,
S&P 500 earnings growth would be 2.7%
The International Energy Agency reported that global oil demand growth would slow in 2016, to 1.2 million barrels per day from 1.8 million in 2015.
China's dollar-denominated imports plunged by a worse-than-expected 20.4% in September from a year earlier, while exports slipped 3.7%, producing a trade surplus of $60.34 billion U.S., official data showed on Tuesday.
Later in the day comes the Treasury budget for September, as well as a Democrat Presidential debate in the evening.
Prices for 10-year U.S. Treasuries were higher, dropping yields to 2.06% from Monday’s 2.10%. Treasury prices and yields move in opposite directions.
Oil prices gained 21 cents a barrel to $47.31 U.S.
Gold prices acquired $1.85 to $1,165.70 U.S. an ounce.
