Rising crude and gold prices pushed the Toronto stock market lower in late trading Wednesday, recovering some of losses made a day earlier on turmoil in the oil-rich Middle East.
The S&P/TSX composite index closed Wednesday’s trading off 7.49 points to 13,995.74
The Canadian dollar was flat to 101.1 cents U.S.
On the TSX, the energy index rose, with shares in Suncor adding $1.02 to $46.08.
The spread of violence in Libya drove oil prices Tuesday to their highest levels since October 2008, but sent the TSX and the loonie plummeting as investors worry that the global economic recovery may be derailed by the sharp rise in oil prices and swelling inflation.
Concerns that the country is descending into civil war were heightened by comments Tuesday from longtime leader Moammar Gadhafi that he would fight to his "last drop of blood," while urging supporters to strike back against protesters to defend his embattled regime.
The rhetoric, alongside mounting evidence of bloodshed around the country, got investors fretting over how the crisis will end and what the impact on the North African country’s oil production will be.
Libya is the world’s 18th largest oil producer, pumping out around 1.8 million barrels a day, or a little under two per cent of global daily output. The OPEC country also sits atop the biggest oil reserves in the whole of Africa.
Gold prices gained ground, with Canadian gold miner Barrick Gold Corp. adding 87 cents to $51.92.
Copper prices fell eight cents to $4.27 U.S. a pound. But the mining sector was up with shares in Teck Resources Ltd. up six cents to $52.13.
In Canadian earnings news, Tim Hortons Inc. says its boosting its dividend by 31% as its fourth-quarter profit rose on the sale of its interest in Maidstone Bakeries. Earnings increased to $377.1 million, or $2.19 per share, up from a profit of $91 million, or 51 cents per share, in the comparable quarter of last year. Sales slipped to $437 million from $464.6 million. Shares were up 32 cents at $41.77.
Sherritt International Corp. says its fourth-quarter profits rose to $81 million, or 28 cents per share, versus $48.3 million, or 16 cents per share a year ago. Filtering out one-time items, profit was 25 cents per share, above the average analyst estimate of 23 cents per share, according to Thomson Reuters. Revenue increased to $508 million from $379.2 million. Shares tailed off 18 cents to $9.00.
Investors also looking ahead to Thursday, when the big Canadian banks start reporting quarterly earnings. CIBC and National Bank kick off the season. Investors are looking to another successful quarter after the big six banks earned a combined $4.45 billion in the previous quarter.
ON BAYSTREET
The TSX Venture Exchange regained 3.49 points to 2,367.04, while the Nasdaq Canada index settled 18.15 points to 801.93.
In Toronto, 10 of the 14 subgroups were negative to end the session. Health-care was down 2.6%, industrials dropped 2%, and consumer staples were off 1.1%.
Gold led the four gainers, up 1.6%, with energy ahead 1.3% and materials picking up 1.1%.
ON WALLSTREET
In New York, equities declined for a second straight session Wednesday as oil prices surged to briefly cross the $100-U.S.-per-barrel mark amid mounting turmoil in Libya.
The Dow Jones industrial average collapsed 107.01 points to close at 12,105.80.
The S&P 500 lopped off 8.04 points to 1,307.40. Both indexes were dragged lower by a 10% drop in shares of Hewlett Packard. Late Tuesday, the computer company issued a disappointing outlook and quarterly sales figures.
The tech-rich Nasdaq Composite Index subtracted 33.43 points to 2,722.99, with a 7% decline in shares of Dollar Tree leading the index lower. HP is not included in the tech-heavy index.
Shares of CBOE Holdings, the parent company of the Chicago Board Options Exchange, jumped almost 2% after Reuters reported that the company is "open to 'strategic transactions" such as a sale or merger with another exchange operator." CBOE declined comment.
Libya's escalating political crisis sparked a sharp selloff in U.S. stocks Tuesday, with the three major indexes posting their biggest one-day drops of the year and as oil prices continued to skyrocket.
Economically speaking, a report from the National Association of Realtors showed that existing home sales rose 2.7% to an annual rate of 5.36 million units.
On Tuesday, the latest S&P/Case-Shiller home price index report indicated that national home prices fell 4.1% during the last three months of 2010, compared with 12 months earlier.
The price on the benchmark 10-year U.S. Treasury reversed course and fell, raising the yield to 3.49% from Tuesday’s 3.46%. Treasury prices and yields move in opposite directions,
Oil for February delivery leaped $3.04 to $98.56 U.S. a barrel.
Gold prices soared $10.40 an ounce to $1,411 U.S.
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