Equity markets in Toronto opened lower on Thursday, as gains in energy were offset by losses in most other sectors after a spike in the number of coronavirus cases outside China raised concerns about the global impact of the epidemic.
The TSX Composite Index dipped 3.13 points to open Thursday at 17,922.23. The index has gained in nine of the last 11 sessions.
The Canadian dollar skidded 0.07 cents to 75.55 cents U.S.
Dozens of people in South Korea were infected by the coronavirus in what the authorities described as a "super-spreading event" at a church. The country, which has reported one coronavirus death, now has 104 confirmed cases of the flu-like virus.
Thomson Reuters is reportedly close to naming former Nielsen Holdings Plc president Steve Hasker as its next chief executive, succeeding Jim Smith. Thomson shares hesitated 68 cents to $107.81.
Kirkland Lake Gold raised its full-year forecast for gold production and beat analysts' estimates for quarterly profit, driven by higher production at its Fosterville mine in Victoria, Australia.
Kirkland Lake shares gave back $2.57, or 5.2%, to $47.01.
Telus said on Wednesday it aims to raise about $1.3 billion through a public stock offering, priced at $52.00 per share. Telus shares dropped $1.96, or 3.7%, to $51.76.
Scotiabank raised the target price on Bank of Montreal to $110.00 from $107.00. BMO shares lost eight cents to $101.01.
Wells Fargo cut the rating on Dollarama to underweight from overweight. Dollarama fell 88 cents, or 2.1%, to $40.81.
CIBC raised the target price on Kinaxis to $125.00 from $110.00. Kinaxis slid $1.19, or 1.1%, to $109.52.
On the economic beat, Statistics Canada said Thursday, 448,000 people received regular Employment Insurance benefits in December, little changed from November.
The agency’s new housing price index was unchanged in January, following a 0.2% rise in December.
ON BAYSTREET
The TSX Venture Exchange eked ahead 0.23 points to 581.92.
Eight of the 12 TSX subgroups advanced in the first hour, with gold better by 0.5%, with real-estate and health-care each improving 0.4%.
The four laggards were weighed most by communications, fading 1.1%, consumer staples off 0.6%, and information technology, down 0.2%.
ON WALLSTREET
Stocks were little changed on Thursday after a high-ranking Federal Reserve official poured cold water on market expectations for easier monetary policy from the U.S. central bank.
The Dow Jones Industrials eked higher 8.23 points to start Thursday at 29,356.26.
The S&P 500 poked higher 1.45 points to 3,387.60.
The tech-heavy NASDAQ slipped 2.1 points to 9,816.09.
In corporate news, Morgan Stanley is buying e-Trade for $13 billion. The news sent e-Trade shares up more than 20% while Morgan Stanley dipped 4.1%.
Domino’s Pizza shares jumped more than 23% on the back of quarterly results that beat analyst expectations. Viacom dropped more than 14% on disappointing earnings.
Fed Vice Chairman Richard Clarida told the media he prefers to look at economists’ forecasts over futures markets on Fed rates. Clarida noted the majority of economists do not expect a rate cut soon from the Fed.
China’s National Health Commission on Wednesday reported that 74,576 cases of the new coronavirus have now been confirmed, with 2,118 deaths on the mainland. Coronavirus cases are also spiking in South Korea. The country said confirmed cases have jumped to 82, more than double the previous number of cases.
S&P Global Ratings warned in a report on Thursday that Chinese lenders could be hit by as much as $1.1 trillion in questionable loans as the coronavirus ripples through China’s economy, while Goldman Sachs has said that markets are underestimating the potential fallout from the outbreak, suggesting the "risks of a correction are high."
To be sure, China’s central bank cut its one-year loan prime rate by 10 basis points overnight in an effort to mitigate the economic fallout from the coronavirus. A summary of the Fed’s January meeting also showed the U.S. central bank is monitoring the spread for any impact on the U.S. economy.
On the data front, weekly jobless claims were in line with expectations at 210,000. The Philadelphia Fed business index surged to 36.7 in February from 17 in January.
Prices for the 10-Year U.S. Treasury gained ground, lowering yields to 1.54% Wednesday’s 1.57%. Treasury prices and yields move in opposite directions.
Oil prices gained 71 cents to $54.00 U.S. a barrel.
Gold prices hiked $9.70 to $1,621.50 U.S. an ounce.
