Canada's main stock index opened lower on Thursday, led by the gold sector, as concerns about the resolution of the U.S. fiscal crisis gave investors room to worry
The S&P/TSX composite index slumped 71.56 points to open Thursday at 12,281.53
The Canadian dollar nudged ahead 0.03 cents to 101.60 cents U.S.
Anglo-Australian miner Rio Tinto confirmed that an independent arbitrator had cleared the way for it to bid for what was formerly known as Ivanhoe Mines but said it had no current intention of making an offer. Ivanhoe, now re-christened Turquoise Hill Resources, saw its shares lose 11 cents to $7.57.
Investors in the oil sands producer are turning up the pressure on Connacher Oil & Gas Ltd. to begin a formal sales process, saying plans to find a partner to keep operating as a stand-alone enterprise won't add enough value. Connacher shares inched up half a cent each to 22.5 cents.
In the economic docket, Statistics Canada’s new housing price index rose 0.2% in October, fairly consistent with similar increases throughout the year.
ON BAYSTREET
The TSX Venture Exchange drooped 12.21 points to 1,172.73
All but one of the 14 Toronto subgroups went south soon after the opening bell. Gold slid 2.2%, materials were off 1.5%, and the metals and mining sector gave back 1.1%.
Only the information technology sector stood out against the negative tide, gaining 0.5%.
ON WALLSTREET
U.S. stocks were little changed at the opening bell Thursday, following a batch of solid economic data.
The Dow Jones Industrials were up 4.37 points to start Thursday at 13,249.80
The S&P 500 dipped 0.52 points to 1,427.96, while the Nasdaq Composite Index moved higher 1.31 points to 3,015.13
On the corporate front Thursday, shares of Best Buy surged following a report that said the company's founder Richard Schulze will make an offer to purchase the electronics company by the end of the week.
Sprint has offered to buy the 49% of wireless broadband provider Clearwire it doesn't already own, according to a regulatory filing.
CVS Caremark shares were higher after the company boosted its quarterly dividend, announced a $4-billion U.S. share buyback and raised its 2013 outlook.
Pier 1 Imports also upped its dividend and announced a share repurchase program of $100 million U.S. The home furnishings retailer also reported better-than-expected third quarter earnings and sales, and lifted its forecast for the year.
Hovnanian reported a net loss of 59 cents U.S. per share in the third quarter, although the homebuilder said it made a profit, excluding various charges, for the first time in 25 quarters.
The data came as investors ponder the latest monetary policy moves.
The Federal Reserve, along with four other central banks, extended an existing policy that makes it cheaper for banks around the world to borrow U.S. dollars -- a staple of global financial transactions -- through February 2014. Previously, the policy was set to expire in February 2013.
The moves follows the Fed's announcement Wednesday to extend its bond buying program and to maintain low rates until the unemployment rate falls to 6.5% or inflation exceeds 2.5% a year. The move was widely expected, and U.S. stocks closed lower Wednesday as investors shrugged it off.
Meanwhile, investors returned their attention to fiscal cliff negotiations, as House Speaker John Boehner and Republican members of Congress gave investors few reasons to be optimistic that lawmakers are close to a deal.
Economically speaking, U.S. initial jobless claims fell more than expected during the latest week, while retail sales bounced back in November. Producer prices fell 0.8% last month.
Treasury prices on the 10-year note lost more ground, raising the yield to 1.72% from Wednesday’s 1.70%. Treasury prices and yields move in opposite directions.
Oil prices lost 42 cents a barrel to $86.35 U.S.
Gold prices dumped $24 an ounce to $1,693.90 U.S.
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