Markets in Toronto started Tuesday’s trading slightly negative, as concerns over gold and material stocks more than offset gains in consumer discretionary issues.
The S&P/TSX composite index dipped 13.26 points to start out Tuesday at 14,742.79
The Canadian dollar was unchanged at to 81.15 cents U.S.
Sun Life Financial said on Monday it is acquiring North American real estate investment manager Bentall Kennedy Group for $560 million, as part of the financial services group's larger strategy to expand its capabilities in commercial property. Sun Life shares gained 31 cents, or 0.7%, to $42.45.
Goldcorp Inc will sell its 25.6% stake in Tahoe Resources Inc for $998.5 million in a bought deal, the two precious metals producers said on Monday. GMP Securities and BMO Capital Markets will act as joint bookrunners on the deal, which will involve the sale of Goldcorp's 58 million Tahoe shares at a price of $17.20. The offer is scheduled to close around June 30. Goldcorp shares fell 10 cents to $20.46.
Hudson's Bay Co.’s $3.2-billion acquisition of Germany's Kaufhof opens a path to expansion in Europe, but experts say the route will be treacherous as the department store operator tries to replicate its North American success on a continent where others have failed.
The deal, announced earlier on Monday, comes at a time when HBC already has its hands full revitalizing and expanding Saks Fifth Avenue stores, which it acquired in 2013, as well as investing heavily in an ecommerce buildout. Bay shares galloped $1.83, or 5.8%, to $27.40.
BMO initiated coverage on Eldorado Gold Corp with a market perform rating citing political uncertainty in Greece and elevated related risks. Eldorado shares dipped 5.5 cents to $5.15.
National Bank Financial resumed coverage on Torc Oil & Gas with an outperform rating after the company’s first-quarter results were in line with expectations and smooth continued operations. Torc shares gathered 11 cents to $9.35.
On the economic ledger, Statistics Canada reported that foreign investors purchased Canadian securities for a fourth straight month in April, adding $12.9 billion to their holdings.
At the same time, our investments offshore resumed with acquisitions of foreign securities totaling $6.6 billion in the month, mainly non-U.S. foreign securities.
ON BAYSTREET
The TSX Venture Exchange slipped 0.11 points to 678.28.
All but four of the 14 Toronto subgroups were down in the early going, weighed mostly by gold, down 1%, materials, down 0.7%, and global base metals, sliding 0.6%.
The four gainers were led by consumer discretionaries, up 0.4%, industrials, up 0.2%, and energy, up 0.1%.
ON WALLSTREET
U.S. stocks traded narrowly mixed on Tuesday as investors attempted to shake off worries over lack of resolution in Greece debt talks amid the Federal Reserve's two-day meeting.
The Dow Jones Industrials added 25.39 points to 17,816.56, with UnitedHealth leading advancers and Caterpillar the greatest laggard.
The S&P 500 index gained 4.45 points to 2,088.88, with consumer staples leading six sectors higher and industrials the greatest decliner.
The NASDAQ moved higher 9.43 points to 5,039.41
Economic data releases continued to show moderate growth.
May housing starts showed an 11.1%decline, missing expectations, while building permits increased 11.8% month-over-month.
The Federal Open Market Committee begins its highly-anticipated meeting on Tuesday. The real news of interest on monetary policy won't come until Wednesday afternoon, when the Fed releases its statement and Chair Janet Yellen holds a press conference. Consensus is for a rate hike in September.
Greek Prime Minister Alexis Tsipras on Monday blamed creditors for the collapse of talks on unlocking aid for reforms at the weekend.
The impasse has raised concerns that Athens is heading for a debt default that could end with it leaving the euro-zone.
Prices for 10-year U.S. Treasuries gained, lowering yields to 2.34% from Monday’s 2.36%. Treasury prices and yields move in opposite directions.
Oil prices gained 26 cents a barrel to $59.78 U.S.
Gold prices fell $8.50 at $1,177.30 U.S. an ounce.
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