The Toronto stock market looked set for little movement at Friday’s open Friday after worries about the future of U.S. economic stimulus brought the TSX lower over the past two sessions.
The S&P/TSX composite index tumbled 74.08 points to end Thursday 12,639.97
The Canadian dollar faded yet another 0.40 cents to 97.78 cents U.S. Friday
Investor sentiment got some lift from data showing that a key survey of German business optimism rose sharply in February.
The Ifo index rose to 107.4 from 104.3 in January. It was the fourth monthly increase in a row, well above the 104.9 points expected by financial market analysts and supported the feeling that Europe’s biggest economy can avoid slipping into recession.
In Canada, conglomerate Onex Corp. recorded a $77-million net loss in the fourth quarter. Revenue at the company, which buys, sells and manages a wide range of businesses in several industries, was $6.9 billion, up two per cent from a year before.
On Thursday, after the markets closed, fertilizer giant Agrium Inc., reported quarterly net earnings of $354 million, or $2.34 per share, beating expectations of $2.02 a share. Sales were $3.26 billion, in line with expectations.
The company is embroiled in a proxy fight with its largest shareholder, Jana Partners LLC, which holds a 6.5% stake in Agrium. It wants Agrium to split its retail division, which sells seeds, fertilizers and other products to farmers, from its wholesale segment.
On the economic front, Statistics Canada told us this morning that consumer prices rose 0.5% in the 12 months to January, following a 0.8% increase in December. The agency also reported that, on a seasonally adjusted monthly basis, the Consumer Price Index decreased 0.1% in January after posting no change in December.
What’s more, retail sales ended a five-month winning streak by declining 2.1% in December. Excluding sales at motor vehicle and parts dealers, retail sales decreased 0.9%.
ON BAYSTREET
The TSX Venture Exchange regained 2.80 points Thursday to 1,133.97
ON WALLSTREET
After two unfortunate trading days in a row, markets could have a quiet close to this short week.
Futures for the Dow Industrials jumped 73 points, or 0.5%, to 13,945. Futures for the S&P 500 took on 7.9 points, or 0.5%, to 1,509, and futures for the NASDAQ progressed 14.75 points, or 0.5%, to 2,728.75.
Wednesday and Thursday's combined losses mark the biggest two-day drop in U.S. stocks this year, and all three indexes are on track for their worst week of 2013. A pullback is not unusual though, given steep gains in January.
Investors rushed back into stocks at the beginning of the year, and continue to add money to the U.S. stock market, but at a much more tempered pace.
Despite the recent losses, the is still up nearly 6% since the beginning of the year, the S&P 500 has gained 5% and the Nasdaq Composite is up almost 4%.
With no major economic reports on tap Friday, investors will likely take their cues from corporate news.
After the closing bell Thursday, Hewlett Packard reported its first-quarter profit fell 11% from a year ago, and sales declined 6%. But expectations for HP are so low that the figures came in above analysts' estimates, sending shares of HP up 4.7% in pre-market trading.
AIG also reported better-than-expected earnings after the bell on Thursday, though revenue fell short of forecasts.
European markets staged a partial recovery from Thursday's selloff in morning trading, although the mood remained cautious ahead of new official European growth forecasts due later Friday, and a key election in Italy this weekend.
Asian markets ended mixed. Japan's Nikkei added 0.7%, while the Shanghai Composite and Hang Seng lost 0.5%.
Oil prices gained 31 cents to $93.15 U.S. a barrel
Gold prices shed $3.10 an ounce to $1,575.50 U.S.
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