Equities in Toronto fell at the open on Wednesday as it was caught up in broader risk aversion prompted by a sell-off in equities in China.
The S&P/TSX composite index slouched 117.80 points to begin Wednesday at 14,506.70
The Canadian dollar faded 0.12 cents to 78.56 cents U.S.
Potash Corp of Saskatchewan is confident that K+S AG shareholders would accept its $8.7-billion bid, but is open to raising it if its German rival could reveal more value not currently seen by the Canadian company, the Globe and Mail reported, citing a source close to the deal.
K+S last week rejected Potash Corp's bid, saying it was too low and that the Canadian suitor could be planning to dismantle the company, putting jobs at risk.
Potash shares gave back 80 cents, or 2.1%, to $37.58.
Tecsys Inc reports Q4 earnings today, expected to come in at six cents per share. Tecsys shares were unchanged at $9.00
DragonWave Inc also reports, expecting a Q1 loss of seven cents per share. DragonWave shares were unchanged at 66 cents.
CIBC cut the target price on Veresen Inc to $19.50 from $19.00 based on a six-month delay in the start-up of Jordan Cove, and 5% lower risk weight.
Veresen shares dropped two cents to $15.99.
CIBC cuts target price on WestJet Airlines to $32.25 from $34, with an outperform rating, based on its June traffic results. The bank also provided an update on its Q2 outlook. WestJet shares tumbled $1.44, or 5.4%, to $25.13.
On the economic beat, Statistics Canada reported this morning that the total value of building permits fell 14.5% to $6.7 billion in May, following two months of double-digit gains. Declines were recorded in five provinces, led by Ontario, which had posted a notable increase the previous month.
ON BAYSTREET
The TSX Venture Exchange fell back 2.65 points to 650.18.
All but one of the 14 TSX subgroups were lower at the outset, with global base metals falling 2.6%, health-care and consumer discretionaries each stooping 1.1%.
The lone gainer was gold, up 0.7%.
ON WALLSTREET
U.S. stocks traded lower by about 1% or more on Wednesday as continued concerns about Greece and the extended selloff in the Chinese market pressured investor sentiment.
The Dow Jones Industrials shrank 193.81 points, or 1.1%, to open the day at 17,583.10, with Intel leading decliners and Microsoft and Home Depot the only advancers.
The S&P 500 index dropped 21.53 points, or 1%, to 2,059.81, with telecommunications leading all 10 sectors lower.
The NASDAQ slumped 60.11 points, or 1.2%, to 4,937.34, as biotechs and Apple plunged more than 1.5%
Earnings season unofficially begins with Alcoa reporting after the market close.
The Greek government has until Friday morning to present detailed reform proposals to allow a bailout deal by a Sunday summit.
Greek Prime Minister Alexis Tsipras addressed the European Parliament on Wednesday, lambasting Europe's advocacy of austerity and the efficacy of Greece's bailout programs since 2010, but promised a detailed, "concrete" deal would be presented in the next two to three days.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.23% from Tuesday’s 2.27%. Treasury prices and yields move in opposite directions.
Oil prices gained 31 cents a barrel to $52.64 U.S.
Gold prices hiked $8.80 at $1,161.40 U.S. an ounce.
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