The Toronto stock market was negative Thursday as worries about Europe’s banks discouraged buying and pushed commodities lower.
The S&P/TSX Composite was behind 28.23 points approaching midday to 12,198.24.
The Canadian dollar dipped 0.68 cents to 98.07 cents U.S.
Fears of growing contagion from the weak European banking sector pushed the TSX financial sector down with TD Bank 66 cents lower at $75.94 and Royal Bank fell 64 cents to $52.31.
The latest flight from risk sent oil and metal prices lower.
The February crude contract on the New York Mercantile Exchange declined, pushing the energy sector down. Canadian Natural Resources moved down 53 cents to $39.32.
The base metals sector was off even as the March copper contract on the Nymex dipped four cents to $3.39 U.S. a pound. Teck Resources shed 62 cents to $38.17.
But shares in Vancouver miner First Quantum Minerals Ltd. jumped 98 cents to $22.04 after it announced that it is selling its mines in Congo and settling legal claims for $1.25 billion U.S. after its operations were nationalized by the government of the central African country.
The company said Thursday it had struck a deal with sell its mines and assets to Eurasian Natural Resources Corp. PLC, including the Kolwezi tailings project, and the Frontier and Lonshi mines and related exploration interests.
The gold sector was down as bullion also stepped back with Kinross Gold Corp. fading 14 cents to $12.24.
In other corporate news, Magna International Inc. has acquired Vogelsitze GmbH, a German manufacturer of seats for the bus and light train industries for an undisclosed price. Magna shares dipped 10 cents to $34.10.
Australia-listed PanTerra Gold Ltd. has made an all-stock takeover offer for Vancouver-based Novus Gold Corp., which has two highly prospective copper and gold concessions in the Dominican Republic. Its shares haven’t traded since Tuesday when they closed at five cents.
Economically speaking, Statistics Canada came out with two reports Thursday morning whose findings were intertwined. Between October and November, the Industrial Product Price Index increased 0.2%, and the Raw Materials Price Index climbed 3.8%, both led by higher petroleum prices.
ON BAYSTREET
The TSX Venture Exchange subtracted 7.99 points to 1,507.90, while the Nasdaq Canada index retreated 1.25 points to 379.76.
Eight of the 14 Toronto subgroups were still down by noon ET. Consumer staples weighed things down 0.9%, while global base metals suffered 0.8%, and energy tailed off 0.7%.
The half-dozen gainers climbed on the backs of health-care stocks, 0.7% healthier, while metals and mining issues were 0.4% more solid, and real-estate stocks built 0.3% higher.
ON WALLSTREET
In New York, equities were under pressure Thursday as fears about Europe's debt crisis trumped two upbeat reports on the U.S. job market. But a rebound in tech and financial shares helped the broader market trim losses.
The Dow Jones Industrials dropped 46.66 points to break for lunch at 12,371.80
The S&P 500 dipped 2.49 points to 1,274.81, while the Nasdaq Composite actually gained five points to 2,653.36.
U.S. stocks are coming off a mixed close Wednesday. Strong auto sales and a rise in November factory orders supported stocks during the day, but investors were cautious given Europe's debt crisis.
Banks, one of the hardest hit sectors in 2011, bounced back, with shares of Citigroup, JPMorgan Chase and Bank of America all rising between 1% and 4%.
Shares of Barnes & Noble plunged after the bookseller said it may spin off its popular Nook e-reader business into a separate business line.
Agricultural producer Monsanto released quarterly results before the opening bell on Thursday. Profits and sales topped forecasts, sending shares up in early trading.
Investors will also be watching retailers, which report same-store sales -- a key metric of retailers' health -- Thursday.
Target reported sales of 1.6% for the month of December, falling far short of forecasts. As a result, the retailer also cut its fourth-quarter earnings forecast. Shares fell 5%.
Shares of Gap and JCPenney also fell on weak December sales figures.
After slumping 3% the day before, Yahoo shares fell further Thursday following news that the company had named PayPal president Scott Thompson as its new CEO.
Eastman Kodak shares dropped following a report that the company was preparing for a possible bankruptcy filing.
The euro fell more than 1% versus the dollar to $1.27 U.S., marking the lowest point for the common currency since September 2010.
The selloff in the euro came as investors were rattled by more turmoil in European sovereign debt markets.
Spanish bond yields jumped after a government official said Wednesday that Spanish banks would need to set aside another €50 billion as part of a restructuring of the nation's banking sector.
Italian bond yields rose above 7%, crossing a key threshold that makes investors nervous.
Shares of Italian bank UniCredit fell another 16% on the Milan stock exchange Thursday after its stock offering drew tepid demand Wednesday.
France sold roughly €8 billion of 10- to 30-year bonds early Thursday, but investors remain nervous about a potential downgrade of the nation's top credit rating.
On the economic front, before the market opened, payroll processor ADP reported that private-sector employers added 325,000 jobs in December. That was much stronger than the 180,000 economists had expected.
The U.S. Labor Department said initial unemployment claims for the week ended Dec. 31 came in at 372,000 -- slightly lower than expectations of 375,000, according to a survey of analysts by Briefing.com -- and down from a revised 387,000 the prior week.
Moreover, the Institute for Supply Management will also release the December installment of its services index, which tracks non-manufacturing orders, employment and inventories. The index is expected to rise to 53, from 52 in the month prior.
Treasury prices for the 10-year note lost whatever strength they’d had by lunch time, driving the yields back up to Wednesday’s 1.99%. Treasury prices and yields move in opposite directions.
Oil for February delivery slid 65 cents to $102.57 U.S. a barrel.
Gold futures for February delivery fell $2.80 to $1,609.90 U.S. an ounce.
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