The Toronto stock market was up almost 150 points as the first half of the trading year ends, before giving back much of those gains before the final bell. This took place while buyers looked past data showing that Canadian economic growth faltered in April while U.S. job growth was also a big disappointment.
The S&P TSX Composite Index ended the day ahead only 30.59 points to 11,294.42, which made up some of Tuesday’s plunge of more than 300 points that followed signs the Chinese economy was slowing as American consumer confidence sharply deteriorated.
Traders take a breather Thursday for Canada Day.
TSX financials were a major source of support on positive news from Europe. The European Central Bank said it will lend $161 billion U.S. to banks for three months, which is a smaller-than-expected sum that suggests banks’ cash needs are easing despite lingering worries about the euro-zone debt crisis.
The loan came as a larger batch of 12-month loans is due to expire and sent a hopeful signal on the health of the banking sector and money markets.
The unusual operation was part of the ECB’s effort to keep cash moving in the markets and stem further fallout from the financial crisis.
The sector rose up 1.11 per cent with Bank of Montreal ahead 35 cents to $57.70 and Scotiabank climbed five cents to $48.80.
The energy sector was up, as Canadian Natural Resources advanced 30 cents to $35.35 while Imperial Oil skidded nine cents to $38.80.
The gold sector was ahead, as Barrick Gold Corp. rose 82 cents to $48.26.
The TSX base metals sector was flat as the September copper contract on the New York Mercantile Exchange climbed two cents at $2.94 U.S. a pound after dropping 16 cents Tuesday. Equinox Minerals lost 12 cents to $3.70 while Western Coal Corp. shaved off two cents to $4.14.
In corporate news, Shaw Communications Inc. reported third-quarter net income rose to $158 million, or 37 cents per share, compared to $132 million, or 31 cents a share, a year ago.
Revenue increased 10% to $944 million. Shaw also expects the acquisition of Canwest Global Communications Corp.’s broadcasting division will be delayed until early 2011 and its shares were up a dime to $19.23.
Maple Leaf Foods Inc. says it has adopted a shareholder rights plan, sometimes referred to as a poison pill defence, to thwart any potential hostile takeover of the big Canadian food processor.
It said the plan would be triggered if an unwanted suitor sought to acquire 20% or more of the company but added that the plan "was not adopted in response to an actual or anticipated transaction." Maple Leaf shares eked ahead three cents to $8.97.
West 49 Inc., the youth-oriented Canadian clothing and sporting goods retailer, has agreed to be acquired by Billabong International Ltd. for about $83 million. West 49 shares jumped 73 cents or 132.7% to $1.28.
Daylight Energy Ltd. says it has struck a deal to sell some of its non-core eastern Alberta oil and natural gas assets to private company Gear Energy Ltd. for $125 million -- $100 million in cash and $25 million in equity. Daylight shares dipped eight cents to $8.91.
In economic news, Statistics Canada said the country's GDP was unchanged in April after seven consecutive monthly increases, official data revealed Wednesday.
Economists were expecting the Canadian economy to grow 0.2% in April. A large decline in retail trade and smaller declines in manufacturing and utilities were offset by increases in mining and wholesale trade.
The Canadian dollar skidded 0.71 cents at 93.94 cents U.S.
ON BAYSTREET
All but three of the 14 TSX subgroups ended the day in positive country. Health-care stocks moved ahead 1.9%, while consumer staples added 1.1% and gold surged 1%.
The three laggards were metals and mining, off 1.4%, global base metals, down 1.1% and energy, sliding 0.01%.
The TSX Venture Exchange picked up 6.15 points to 1,415.89 while the Nasdaq Canada index was down 5.25 points to 602.68
ON WALLSTREET
In New York, stocks finished lower after a late-session retreat, as investors piled out of a downbeat quarter that ended with Wednesday's session.
The Dow Jones industrial average gave back 96.28 points, or nearly 1%, to 9,774.02
The S&P 500 index faded 10.53 points to 1,030.71
The Nasdaq composite index moved 25.94 points lower to 2,109.24.
All three indexes' closing figures were the lowest since late 2009. Declines were broad-based, with 29 of the 30 Dow components ending lower Wednesday. Diversified manufacturer 3M managed to hold a 0.6% gain.
Wednesday's session marked the end of the second quarter, during which the blue-chip Dow fell more than 10% as concerns about Europe's debt and the overall global economy plagued investors.
The Nasdaq and S&P 500 each lost 12% in the second quarter.
Year-to-date, the Dow is off 7.7%. The Nasdaq and S&P 500 are both down 9% over the first half of the year.
Executives from Goldman Sachs and AIG testified before a special committee looking into the financial crisis about derivatives.
Joseph Cassano, the man who ran the business at the centre of AIG's collapse, defended his tenure at the insurer and maintained he led efforts to shield the company from fallout.
Stock losses were limited on news that European banks sought fewer loans than anticipated.
The European Central Bank said demand for an offering of three-month loans was weaker than expected, implying that European banks are not in as much trouble as investors had previously thought.
A total of 171 banks borrowed 131.9 billion euros from the ECB, less than the 210 billion euros analysts had expected the central bank would need to lend, according to a Reuters poll.
The ECB's year-long lending program is slated to expire Thursday, so investors have been worried banks that have become dependent on that liquidity will feel the crunch.
Speaking about the economy, a report on private sector jobs from payroll processing firm ADP showed the U.S. economy gained 13,000 jobs in June. The figure was significantly less than the 61,000 increase forecast from economists surveyed by Briefing.com, after a revised gain of 57,000 in May.
The ADP report came ahead of the all-important employment report released by the U.S. government on Friday.
Treasury prices rose, lowering the 10-year note's yield to 2.95% from Tuesday’s 2.97%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil grew 86 cents to $75.29 U.S.
Gold prices were flat at $1,243 U.S. an ounce.
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