Canada’s main stock index struggled to rise above the breakeven point Wednesday, as losses by Goldcorp. Inc. put restraints on upward movement.
The S&P/TSX Composite Index nosed up 13.84 points to approach noon at 11,526.06
The Canadian dollar strengthened 0.29 cents at 98.09 cents U.S.
Shares of Canadian gold miner Goldcorp Inc. fell 8.9% early Wednesday, after the company late Tuesday cut its 2012 production outlook.
The company's gold production forecast for 2012 was trimmed to between 2.35 million and 2.45 million ounces, from 2.6 million, citing setbacks its Red Lake mine in Ontario and Peñasquito mine in Mexico.
In corporate news, Vancouver-based miner South American Silver Corp. is protesting Bolivia’s decision to revoke its licence to mine a rich silver deposit in the country and nationalize the project. The licence was cancelled Tuesday following opposition from Quechua Indians who had seized workers employed by the company to press their case.
The stock has taken a pounding in the last few days, reaching lunch time around 40.5 cents, 8.5 cents or 17.4% lower than Tuesday’s close.
Economically speaking, our trade balance changed drastically in May, according to figures released this morning by Statistics Canada.
The agency said merchandise imports increased 0.4% while exports were fairly flat in May. As a result, Canada's trade deficit with the world widened from $623 million in April to $793 million in May.
ON BAYSTREET
The TSX Venture Exchange headed south 6.23 points to 1,193.13. The Nasdaq Canada index improved 1.79 points to 343.48.
Nine of the 14 Toronto subgroups gained ground, led upward by energy stocks, climbing 1.3%, information technology, up 1.1%, and consumer staples, ahead 0.9%.
The five laggards were weighed mostly by gold, down 2.5%. materials, off 1.9%, and metals and mining issues, sliding 1.1%.
ON WALLSTREET
U.S. stocks were mostly lower Wednesday, as investors took to the sidelines ahead of the release of the Federal Reserve's meeting minutes later in the day.
The Dow Jones Industrials faded 19.64 points to break for lunch at 12,633.48
The S&P 500 added 1.23 points to 1,342.69. The Nasdaq Composite Index dumped 13.42 points to 2,888.91.
Tech stocks were big gainers Wednesday, with Netflix, Research in Motion, Hewlett-Packard and Cisco all gaining ground.
When JPMorgan reports earnings Friday, the bank is expected to show how much it has lost so far due to the risk-taking of its London Whale trader.
The report could generate even more interest if, as The Wall Street Journal reported Wednesday, the bank will make an example of executives behind the errors and reclaim stock from them worth millions.
The Fed will release the minutes of its latest policy-making meeting at 2 p.m. Wednesday afternoon. Investors will be sorting through the report to gain insight into the central bank's latest decision to extend its Operation Twist program through the end of the year and for clues about whether any further central bank intervention is looming.
Investors have been watching for any signs of another round of quantitative easing -- this time called QE3.
Investors also welcomed a renewed Spanish focus on fixing its debt dilemma. In a speech to parliament, Prime Minister Mariano Rajoy said the country would cut €65 billion ($79.6 billion U.S.) in less than three years by reducing government and raising taxes. Meeting budget deficit reduction targets would require austerity and more efficiency, he said.
The speech came after European finance ministers agreed late Monday to offer the struggling country an initial €30 billion by the end of the month to help bail out its troubled banks. Yields for Spanish 10-year bonds, which have hovered around the perilous 7% level in recent weeks, fell to 6.64% Wednesday.
Economically speaking, the U.S. trade deficit stood $48.7 billion in May, coming in just slightly below expectations. It dropped from $50.1 billion the prior month.
As expected, wholesale inventories for May increased by 0.3%.
The price on the benchmark 10-year U.S. Treasury recovered lost ground, pushing the yield down again to Tuesday’s 1.50%. Treasury prices and yields move in opposite directions.
Oil for August delivery marched ahead $1.41 to $85.32 U.S. a barrel.
Gold futures for August delivery fell $6.60 to $1,574.30 U.S. an ounce.
Related Stories
