The Toronto stock market was slightly lower Wednesday as commodity prices backed off following the strong gains that had started 2012 trading. Shaky European numbers added to the mix.
The S&P/TSX Composite approached noon only 4.76 points south of breakeven at 12,203.67. Tuesday saw a jump of more than 250 points.
The Canadian dollar dipped 0.26 cents to 98.70 cents U.S.
Across the pond, the final report on the December euro-zone services Purchasing Managers Index came in at 48.8.
At the same time, there was relief as Germany successfully auctioned €4.06 billion in 10-year bonds despite concerns over the debt crisis that’s afflicting the 17-nation euro-zone. Demand for the bonds outstripped supply as investors placed bids for €5.14 billion of the debt securities. The average interest yield was a low 1.93%, down from 1.98% in November.
The German auction was closely watched after a bond sale late last year failed to sell a third of the bonds on offer.
Commodity prices were lower as Iran ended 10 days of naval manoeuvres Tuesday with a warning to the U.S. military to stay out of the Persian Gulf. Iran has threatened to close the key oil passageway Strait of Hormuz as possible retaliation to new U.S. economic sanctions. The U.S. has said it will not tolerate such a move.
Canadian Natural Resources lost 56 cents to $39.26.
The base metals sector was down as copper prices gave back a chunk of Tuesday’s nine-cent rise while the March contract slipped five cents to $3.48 U.S. a barrel. Teck Resources gave back 47 cents to $37.90.
The gold sector was slightly lower as bullion prices also weakened. Kinross Gold faded 14 cents to $12.28.
The tech sector was also a weight with Research In Motion Ltd. down 30 cents to $15.41 and Open Text shed 97 cents to $52.05.
In corporate news, Connacher Oil and Gas shares fell 14 cents, or 15.7%, to 75 cents amid a shakeup in the company’s executive ranks. Connacher also said it expects to report strong operating and financial results for the fourth quarter and expand its previously announced capital budget for 2012.
ON BAYSTREET
The TSX Venture Exchange slipped 3.21 points to 1,503.07, while the Nasdaq Canada index subtracted $.72 points to 379.57.
Eight of the 14 Toronto subgroups were lower by midday. Information technology slid 0.8%, while health-care stocks faded 0.4%, and real-estate issues retreated 0.2%.
The half-dozen gainers were led by gold and global base metals, up 0.3% each, and consumer discretionaries, 0.2% to the good.
ON WALLSTREET
In New York, stocks fell Wednesday as investors refocused on Europe's debt crisis following a brief respite in the previous session.
The Dow Jones Industrials eased 22.81 points by noon ET to 12,374.60. The big board hiked nearly 180 points Tuesday.
The S&P 500 sifted off 2.47 points to 1,274.59, while the Nasdaq Composite gave back 7.28 points to 2,641.44.
Shares of U.S. banks pared Tuesday's gains, with Bank of America, Citigroup and JPMorgan all lower.
Yahoo named PayPal president Scott Thompson as its new CEO.
Ford shares rose after the automaker said sales rose 10% in December and were up 17% in 2011.
Shares of rival GM eased after it reported a sales increase of 5% in December and 14% for the year.
Caterpillar shares fell after the construction equipment manufacturer announced it will expand its research and development center in Wuxi, China.
Dunkin' Brands shares climbed after the company announced it plans to double the number of its Dunkin' Donuts restaurants in the United States in the next 20 years. The chain currently operates about 7,000 restaurants nationwide.
Cabot Oil & Gas announced a two-for-one stock split, after its stock rallied 105% over the last year. The company also plans to increase its quarterly dividend 33%
Stocks rallied Tuesday following strong manufacturing reports from China, India and the United States. But the tone was cautious Wednesday as jitters surrounding Europe's debt crisis resurfaced.
Shares of Italy's UniCredit plunged on the Milan stock exchange after the bank announced a €7.5-billion offering of new shares. The offering drew lackluster demand despite a steep discount, according to local media reports.
European banks are facing new capital requirements this year and conditions in the wholesale funding market remain chilly.
The European Central Bank recently pumped nearly €500 billion into the banking sector, but much of that money appears to have been re-deposited at the central bank. Banks have stashed a record €453.2 billion at the E.C.B.'s deposit facility, according to data published Wednesday.
Economically speaking, Census Bureau said factory orders rose 1.8% in November, following a 0.2% decrease the month before. Analysts surveyed by Briefing.com were expecting an increase of 2.1%.
This afternoon, the U.S. Commerce Department will release data on auto and truck sales for December. Auto sales stood at a 4.36-million annual rate in November, while truck sales were at a 5.98-million rate.
Treasury prices for the 10-year note faded, driving the yields up to 1.98% from 1.96% late Tuesday. Treasury prices and yields move in opposite directions.
Oil for February delivery slid 34 cents to $102.62 U.S. a barrel.
Gold futures for February delivery rose $9.10 to $1,609.60 U.S. an ounce.
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