Canadian stocks managed to squeeze out gains by the end of Wednesday’s session, to track movements in the U.S. and European markets as optimism over a resolution to the euro-zone debt crisis faded.
The S&P/TSX Composite Index pulled ahead 67.48 points to 12,148.73 by the closing bell after drifting generally lower throughout the morning and staggering through much of the afternoon.
The Canadian dollar edged 0.02 cents lower to 99.02 cents U.S.
An upbeat report on the nation’s economy from BMO Capital Markets on Wednesday, however, provided support.
Earlier weakness in Toronto came as hopes for progress at this week’s European Union summit were tempered by media reports that a German official was opposed to combining the euro-zone’s €440-billion ($593.1 billion U.S.) interim bailout fund, and the permanent €500-billion European Stability Mechanism.
Concerns over the euro-zone debt crisis have wreaked havoc among global stock markets amid concerns about how the crisis will impact the world’s economy.
On Wednesday, however, Robert Kavcic, economist at BMO Capital Markets, said in a press release that real gross domestic product in Canada’s Saskatchewan province will likely expand 3% this year, leading growth in the country, "helped by a rebound in agriculture output," though Saskatchewan’s GDP will cool slightly to a 2.9% pace in 2012.
As for BMO itself, its shares dipped 60 cents to $57.14, on word the bank was hiring the head of Metrolinx, the agency that operates GO Transit for the Ontario government, as its chairman. The bank says Robert Prichard, also a former CEO at Torstar Corp., will take the position after serving as an independent director of BMO since 2000.
Prichard replaces the retiring David Galloway who is retiring.
Shares of Nexen Inc fell 24 cents to $15.68 and Suncor Energy Inc. lost 41 cents to $30.46. On the other hand, Imperial Oil prospered $1.30 or more than 3% to $44.50
Research In Motion Ltd. saw its stock trade 38 cents, or 2.2%, lower to $16.80 in Toronto, after the smartphone maker announced another name change for its latest operating system following a trademark dispute.
In the gold patch, Goldcorp saw its shares stay put at $52.54, and Kinross Gold moved up four cents to $14.00.
ON BAYSTREET
The TSX Venture Exchange fell 3.48 points to 1,539.21, while the Nasdaq Canada index backtracked 2.85 points to 391.49
All but two of the 14 Toronto subgroups were up at the closing bell. Health-care issues were 1.3% more robust, while financials were in the money 1.2% and real-estate stocks jumps 0.8%.
The two laggards were information technology, off 0.8%, and global base metals, listing lower by 0.1%.
ON WALLSTREET
In New York, stocks were mixed Wednesday, with the Dow outperforming other indexes, as investors await the outcome of a key summit this week in Europe.
The Dow Jones Industrials moved north 46.24 points to close out Wednesday at 12,196.40
The S&P 500 recovered 2.54 points, to 1,261.01, while the Nasdaq Composite subtracted 0.35 points to 2,649.21
Shares of Citigroup fell after CEO Vikram Pandit said late Tuesday that the banking giant would lay off roughly 4,500 employees over the next few months.
Shares of retailer Talbots skyrocketed 60% after it said it had received a bid from buyout firm Sycamore Partners.
Early Wednesday, retailer J.C. Penney announced it would buy a stake in home decor expert Martha Stewart's franchise, Martha Stewart Living Omnimedia. The retail giant said it would invest $38.5 million. Shares of Martha Stewart Living rose 33% in early trading.
Shares of Monsanto fell after the agriculture company raised its fiscal first-quarter earnings-per-share guidance.
Apparel company Pacific Sunwear will report results after the closing bell, and is expected to post a loss of 14 cents U.S. a share after losing seven cents U.S. per share in the prior year.
Stocks opened lower after comments from a German official dampened hopes that a summit of European Union leaders this week will produce a breakthrough solution to the euro-zone debt crisis.
But the market recovered in the afternoon as investors remain cautiously optimistic that E.U. leaders understand what's at stake and will act forcefully to prevent a complete disaster.
On Thursday, the European Central Bank is widely expected to cut interest rates by up to 0.5% as the risk of a broad recession in Europe continues to rise.
E.U. heads of state will meet Thursday and Friday in Brussels to discuss closer political and economic coordination, as well as other measures to restore market confidence and stabilize the continent-wide currency.
Meanwhile, U.S. Treasury Secretary Tim Geithner is in Europe this week to meet with top government officials, highlighting the growing concern in Washington about the euro-zone debt crisis.
After meeting with his French counterpart, Geithner sounded confident about European leaders' ability to enact fiscal reforms and boost economic growth.
The price on the benchmark 10-year U.S. Treasury gained ground, pushing the yield down to 2.02%, from 2.09% late Tuesday. Treasury prices and yields move in opposite directions.
Oil for January delivery gave back 72 cents to $100.56 U.S. a barrel.
Gold futures for February delivery rose $10.10 to $1,741.90 U.S. an ounce.
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