Markets in Toronto turned lower shortly after the open on Wednesday, weighed by financial issues as investors look ahead to minutes from the U.S. Federal Reserve's June meeting and a speech by Chairman Ben Bernanke later during the session.
The S&P/TSX Composite Index dropped 26.41 points to begin Wednesday’s trading at 12,270.68
The Canadian dollar picked up 0.09 cents to 95.09 cents U.S.
The most recent concerns about the health of the world’s second-biggest economy grew after the release of disappointing trade data.
China’s exports fell by 3.1% in June compared with the year before and imports contracted by 0.7%. Both were below forecasts of growth in the low single digits.
The report was issued a day after the International Monetary Fund scaled back its China 2013 growth forecast to 7.8% from 8.1%.
National Bank Financial raised the price target on Calfrac Well Services Ltd to $39 from $33, expecting a positive outlook for activity in the second half of 2013 with the company poised for outsized benefits given the current customer mix. Calfrac shares dropped 33 cents to $30.68.
BMO started the rating coverage on Continental Gold at outperform, expecting the company to trade at a premium to peers given the Buritica project's high-grade ounces, and potential top cash costs. Continental shares dipped 12 cents to $3.29
ON BAYSTREET
The TSX Venture Exchange edged higher 1.78 points to 878.84
All but two of the 14 Toronto subgroups were lower, as metals and mining stocks tumbled 1.2%, utilities and information technology off 1.1% each.
The two gainers were consumer staples, up 0.5%, and energy, up 0.1%.
ON WALLSTREET
The U.S. Federal Reserve is back in the limelight.
U.S. stocks were little changed Wednesday, following four days of gains, as investors waited to hear more about the Fed's bond-buying program.
The Dow Jones Industrials slid 22.72 points to 15,277.60
The S&P 500 index dipped 1.39 points to 1,650.93. The NASDAQ Composite increased 3.95 points to 3,508.22
Corporate earnings, which started coming in this week, are also in focus. U.S. stocks have been moving higher over the past few trading sessions due to underlying optimism about earnings results from companies for the three months that ended in June. The major stock indexes are in sight of all-time highs set in late May.
Family Dollar shares climbed sharply Wednesday after reporting a better-than-expected profit and a 10% jump in sales. More company results are due Wednesday, with restaurant operator Yum! Brand set to report after the close.
Meanwhile, shares of Cliffs Natural Resource were higher after the mining company announced that Joseph Carrabba is stepping down as chairman and will retire from his CEO post at the end of the year.
Hewlett Packard stock jumped following an upgrade from Citigroup.
The U.S. central bank is slated to release the minutes of its most recent policy meeting in the afternoon.
At the conclusion of its June meeting, the Fed announced that it could begin pulling back on its $85 billion U.S. in monthly bond purchases later this year, and wind down the program entirely by mid-2014, as long as the economy improves in line with its expectations.
Investors will also be looking for more clarity from Fed chairman Ben Bernanke, who is on tap to speak before the National Bureau of Economic Research in Cambridge, Mass., after the markets close.
Prices for the 10-year U.S. Treasury sagged, upping yields down to 2.65% from Tuesday’s 2.63%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.64 to $105.17 U.S. a barrel.
Gold prices gained $10 to $1,255.90 U.S. an ounce.
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