Canada's resource heavy index slipped a bit Thursday morning after minutes of the latest U.S. Federal Reserve meeting indicated central bank might be ready for third round of stimulus "fairly soon" prompted an optimistic tone that outweighed poor economic data from China and Europe.
The S&P/TSX Composite index dipped 19.06 points to begin Thursday’s session at 12,099.93.
The Canadian dollar weakened 0.06 cents to 100.81cents U.S.
Among the stocks to watch this morning, Oslo-listed DNO International will not make an offer to buy Calvalley Petroleum after talks with the company failed to provide it with enough information regarding litigation by Al-Zarqa Electricity, the company said. Calvalley shares fell 21 cents to $2.14 in the session’s first hour.
On the economic ledger, Statistics Canada says the number of folks on the pogey dipped in June. The agency says those drawing regular Employment Insurance benefits continued its downward trend, edging down to 507,600 from 512,100 in May.
ON BAYSTREET
The TSX Venture Exchange eked up 0.18 points to 1,245.84. The Nasdaq Canada eked up 0.94 points to 349.74.
Of the 14 Toronto subgroups, eight were lower, weighed down by industrials, down 0.5%, while financials and energy stocks trailed yesterday’s close by 0.4% each.
The half-dozen gainers were led by gold, up 0.7%, materials were up 0.4%, and health-care stocks advanced 0.3%.
ON WALLSTREET
U.S. stocks opened lower Thursday, following two manufacturing reports that showed further slowing in China and Europe.
The Dow Jones industrial average fell 78.86 points to begin the day at 13,093.90
The S&P 500 index demurred 6.82 points to 1,406.67, while the tech-heavy Nasdaq Composite Index shrank 16.86 points to 3,056.81.
Shares of Big Lots suffered when the market opened, falling nearly 20%. The closeout retailer reports quarterly results Thursday morning.
Meanwhile, shares of computer maker Hewlett-Packard tumbled nearly 8%. HP reported better-than-expected quarterly earnings after the close Wednesday, but issued disappointing sales and revenue forecasts.
Manufacturing hit a nine-month low in China and contracted across the euro-zone for the seventh month in a row.
Investors will be keeping tabs on Europe as French President Francois Hollande and German Chancellor Angela Merkel meet to discuss Greece. Greek Prime Minister Antonis Samaras has reportedly been pushing for a two-year extension of the country's bailout program.
Investors also parsed through the latest reading on the U.S. labour market, with a report on unemployment claims showing a surprise increase for the latest week.
Wall Street trading volume is expected to stay light for the rest of August. U.S. stocks ended mixed Wednesday, as minutes from the Federal Reserve's July meeting sparked hope for further stimulus measures.
The minutes show the central bank is considering two key measures to boost the U.S. economy. Investors are likely to stay focused on the Fed, with attention on the Kansas City Fed's annual symposium in Jackson Hole, Wyo. next week.
On matters economic, the U.S. Labor Department released its weekly report on first-time unemployment claims Thursday, revealing an increase to 372,000 from the previous week's revised figure of 368,000. That was more than the 365,000 that economists had expected.
New-home sales figures from the U.S. Census Bureau are due later this morning. Economists surveyed by Briefing.com expect sales rose to an annual rate of 368,000 in July from 350,000 in June.
The price on the benchmark 10-year U.S. Treasury gained, pushing the yield down to 1.67% from Wednesday’s 1.72%. Treasury prices and yields move in opposite directions.
Oil for September delivery gained 28 cents to $97.54 U.S. a barrel.
Gold futures for December delivery rose 10 cents to $1,616.50 U.S. an ounce.
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