Markets in Toronto opened lower on Tuesday as commodity prices dropped after concerns of a military strike against Syria eased, weighing on shares of materials and energy companies.
The S&P/TSX composite index began Tuesday’s session down 47.85 points to 12,806.79
The Canadian dollar moved higher 0.13 cents to 96.51 cents U.S.
Centerra Gold Inc. said it entered into an understanding with the Central Asian state of Kyrgyzstan that could pave the way for joint ownership of the country's flagship mine. Centerra shares retreated 0.5% to $6.47.
Energy Minister Joe Oliver said on Monday Canada will do more in the global fight against climate change as the nation develops its vast oil sands resources and tries to win backing for the controversial Keystone XL pipeline, which is being proposed by the company.
The words sparked energy companies such as TransCanada Corp., which advanced 0.7% to $46.10.
Stronger-than-expected industrial output reinforced other signs that China's economy was stabilizing after slowing for more than two years, just as major emerging markets brace for potential fallout from an expected trimming of U.S. stimulus.
On the domestic economic front, Canada Mortgage and Housing Corporation reported this morning that August housing starts fell more than expected to 180,291. The market call had been for a reading of 190,000.
The July figures were revised slightly higher to 193,021 from the 192,853 originally reported.
ON BAYSTREET
The TSX Venture Exchange fell 4.81 points to 947.13
The 14 Toronto subgroups were evenly divided between winners and losers, the former group being led by metals and mining stocks, up 1.3%, while global base metals took on 1.2%, and telecoms advanced 0.5%.
The seven laggards were weighed mostly by gold, down 2.8%, materials, off 1.5%, and energy, slipping 0.9%.
ON WALLSTREET
Investors had a lot to be optimistic about Tuesday: Upbeat data from China, easing Syria concerns and a much-anticipated Apple event later in the day.
The Dow Jones Industrials shot higher 96.83 points to open Tuesday at 15,160. The S&P 500 index gained 9.64 points to 1,681.35. The NASDAQ gained 15.14 points to 3,721.32
Shares of Apple were slightly lower as investors await the company's release of the next generation of iPhones, rumoured to be colourful and cheaper to produce. The event is being held at 1 p.m. ET. But the stock has run up sharply since Apple's last earnings report.
Nike, Goldman Sachs and Visa were also in focus, as the three will be the newest members of the Dow, replacing Alcoa, Hewlett-Packard and Bank of America. Shares of Goldman, Nike and Visa all rose on the news. Alcoa and HP fell while BofA was flat.
The broader market was likely moving higher again as concerns about a U.S.-led militarystrike on Syria have been pushed to the back burner. A military strike had seemed imminent last month and caused some extreme market volatility recently.
But politicians in Washington continue to debate the pros and cons of a strike. In addition, Secretary of State John Kerry raised the possibility Monday of avoiding an attack if Syria were to give up its chemical weapons.
Prices for the 10-year U.S. Treasury sagged, raising yields to 2.96% from Monday’s 2.90%. Treasury prices and yields move in opposite directions.
Oil prices docked $2.49 to $107.03 U.S. a barrel.
Gold prices sank $26 at $1,360.70 U.S. an ounce.
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