Equity markets in Toronto started out negative on Wednesday as concerns mounted over waning global economic growth.
The S&P/TSX composite index sagged 21.74 points to open at 14,554.74
The Canadian dollar lost 0.05 cents at 89.46 cents U.S.
Canadian pharmacy chain Jean Coutu Group reported higher quarterly sales, helped by demand for generic drugs and the expansion of its network of franchised stores. Coutu shares gathered 11 cents in the first trading hour to $24.52.
A European Union plan to label Canadian tar sands oil as highly polluting as part of its fight against climate change has been abandoned after years of opposition from Canada, clearing the way for exports of tar sands crude to the European market.
Economically speaking, Canada Mortgage and Housing reported the seasonally adjusted annualized rate of housing starts climbed to 197,343 units last month from an upwardly revised 196,283 units in August, topping analysts' forecasts for 196,100. August was originally reported as 192,368.
ON BAYSTREET
The TSX Venture Exchange inched back 1.84 points to 852.99.
Nine of the 14 Toronto subgroups were lower at the outset, as energy moved lower 1.2%, while information technology and industrials each fell 0.4%.
The five gainers were led by gold, up 2.1%, materials, ahead 1.2%, and consumer staples, up 0.4%.
ON WALLSTREET
The U.S. stock market managed a modest rally on Wednesday, a day after a bout of heavy selling drove the main benchmark down nearly 4% from its peak reached just last month.
The Dow Jones Industrials moved higher 18.34 points to 16,737.73, after Tuesday’s 200-point-plus dive.
The S&P 500 inched forward 1.71 points to 1,936.81. The NASDAQ index gained 3.13 points to 4,388.60.
The release of Federal Open Market Committee minutes due at 2 p.m. Eastern Time may provide direction to the markets, but some strategists believe not much will be revealed as the Fed has already been relatively transparent about its monetary policy intentions.
Investors appear reluctant to make big bets ahead of earnings season, which Alcoa unofficially kicks off after the market close.
Yum Brands Inc. picked up 1.6% after a big selloff on Tuesday. The company’s profit and outlook missed estimates, and it slashed expectations for full-year growth in earnings per share.
Kraft Foods Group Inc. was up 0.5% after the food company said Tuesday it’s raising its quarterly dividend to 55 cents U.S.a share, from 52.5 cents U.S.
Costco Wholesale Corp. surprised with a 13% rise in profit on growth in same-store sales and higher sales from membership fees. Shares rose 1.9%.
Symantec Corp. could be looking at a split, Bloomberg News reported, citing persons with knowledge of the plans. Shares rose nearly 2%.
Prices for 10-year U.S. Treasuries eked higher, lowering yields to 2.34% from Tuesday’s 2.35%. Treasury prices and yields move in opposite directions.
Oil prices faded $1.22 to $87.63 U.S. a barrel.
Gold prices hiked $6.30 to $1,218.70 U.S. an ounce.
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