The Toronto stock market was slightly higher at the close Wednesday, even as the cloud of doubt over Europe’s debt continued to hang
The S&P/TSX Composite tacked on 18.04 points to conclude the session at 12,226.47.
The Canadian dollar dipped 0.19 cents to 98.77 cents U.S.
Markets in Toronto and New York racked up strong gains on Tuesday amid data showing growing expansion in the U.S. and Chinese manufacturing sectors, with the TSX ahead 253 points and the Dow ahead 180 points.
But that data was counter balanced Wednesday by a report showing continued economic deterioration in Europe.
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 with the February crude contract on the New York Mercantile Exchange down, although the TSX energy sector did finish stronger.
Even so, Canadian Natural Resources lost a penny to $39.81.
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 gained back 47 cents to $38.84.
The gold sector was slightly lower as bullion prices also weakened. Kinross Gold faded six cents to $12.36.
The tech sector was also a weight with Research In Motion Ltd. down 44 cents to $15.27 and Open Text shed 82 cents to $52.20.
In corporate news, Connacher Oil and Gas shares fell 12 cents or 13.5% to 77 cents amid a shakeup in the company’s executive ranks. The company has announced the departure of its president/CEO, along with its vice-president/chief financial offer and vice-president of corporate development.
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 regained 9.61 points to 1,515.89, while the Nasdaq Canada index subtracted 3.28 points to 381.01.
The 14 Toronto subgroups were evenly split by the end of the day in terms of gainers and losers. Metals and mining stocks led the former group, picking up 0.8%, while industrials and energy issues surged 0.6% each.
The seven laggards were weighed by health-care, ailing 0.7%, while information technology stocks ticked 0.6% lower, and real-estate stocks slid 0.4%.
ON WALLSTREET
In New York, stocks clawed back lost ground in a thinly traded session Wednesday amid renewed concerns about the debt crisis in Europe.
The Dow Jones Industrials moved doggedly into the green by 21.04 points to end the day at 12,418.40
The S&P 500 inched up 0.24 points to 1,277.30, while the Nasdaq Composite gave back 0.36 points to 2,648.36.
Stocks were supported by strong sales gains by the main U.S. automakers and a rise in November factory orders. But the tone was cautious 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.
Shares of U.S. banks pared Tuesday's gains, with Bank of America, Citigroup and JPMorgan all lower.
Elsewhere, Yahoo named PayPal president Scott Thompson as its new CEO.
Ford shares rose after the automaker said sales rose 11% in December and were up 10% in 2011.
Shares of rival GM edged higher after it reported a sales increase of 4.5% in December and 13% 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%.
Economically speaking, the U.S. 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%.
Treasury prices for the 10-year note faded, driving the yields up to 1.99% from 1.96% late Tuesday. Treasury prices and yields move in opposite directions.
Oil for February delivery added 27 cents to $103.23 U.S. a barrel.
Gold futures for February delivery rose $12.70 to $1,613.20 U.S. an ounce.
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