Canadian equities inched lower Tuesday, looking set to extend losses from the previous session with the metals and mining sector posting the largest decline.
The S&P TSX Composite Index ended the day off 47.43 points to 12,512.42
The Canadian dollar regained 0.10 cents at 100.52 cents U.S.
Optimism that Greece is near a final agreement for a second rescue package and news that Canadian building permits in December rose to their highest level since June 2007 helped limit losses in Toronto.
Leading the declines among the subsectors in Toronto, the metals and mining index fell as copper prices edged lower with shares of Teck Resources Inc. losing 90 cents, or 2.1%, to $41.60
Canadian Natural Resources Ltd. fell $1.62, or 4%, to $38.66, and First Quantum Minerals Ltd. traded 66 cents, or 2.9%, lower to $21.98
Nevsun Resources shares were a standout, sinking $1.95, or 30.8% to $4.39 after the company said it would have to revise downwardly a resource estimate used for mine planning at its Bisha mine in Eritrea.
Energy shares were also mostly lower, with shares of Suncor Energy Inc. losing 41 cents, or 1.2%, to $34.51, and Cenovus Energy Inc. off 44 cents, or 1.2%, to $37.67.
In earnings news, Canfor Pulp Products Inc. said its net income in the fourth quarter was $5.9 million or 17 cents per share, compared to a loss of $11.3 million or 32 cents per share a year earlier. Its shares fell 90 cents, or 6.6%, to $12.85.
On matters economic, Statistics Canada reported this morning that municipal building permits totaled $6.8 billion in December, growing 11.1% from November to the highest level since June 2007, attributable largely to a boost in multi-family dwellings in Ontario and commercial buildings in Alberta.
ON BAYSTREET
The TSX Venture Exchange backpedaled 0.89 points to 1,663.33, while the Nasdaq Canada index rebounded 0.27 points to 424.88
In all, nine of the 14 Toronto subgroups were still negative on the day, weighed mostly by metals and mining stocks, off 2.1%, while global base metals suffered 1.4%, and energy stocks were sapped 1.1%.
The five gainers were paced by real-estate and industrial stocks, each up 0.4%, and telecoms, up 0.3%.
ON WALLSTREET
In New York, stocks moved higher Tuesday, erasing earlier losses, amid hopes that Greece is nearing a deal to secure more bailout money.
The Dow Jones Industrials climbed 33.07 points to conclude the session at 12,878.20.
The S&P 500 picked up 3.04 points to 1,347.37, while the tech-rich Nasdaq was better by 2.09 points to 2,904.08
So far this year, the Nasdaq is up 11%, the S&P 500 is up about 7%, and the Dow has gained 5%.
Commodities trader Glencore International agreed to buy Xstrata for $61.9 billion U.S., making it the biggest mining takeover in history. The deal will create a $90-billion U.S. company.
Shares of Sears Holding Company rallied amid speculation it was working with Goldman Sachs to find a buyer for the troubled retailer.
Investors also had a smattering of corporate results to parse through on Tuesday.
Oil company BP posted increased fourth-quarter profits and raised its dividend on Tuesday. The company hailed the improved result as a turning point in the long climb back from Gulf of Mexico oil spill of 2010.
But shares of BP slipped, as investors remain wary of how much the spill will cost following a trial that is set to begin later this month.
Shares of UBS lost ground after the Swiss bank posted a 75% drop in its fourth-quarter profit and missed forecasts. The bank also issued a bleak outlook for the current quarter -- noting that concerns over the European debt crisis, U.S. deficit and ongoing uncertainty about the global economic outlook will have a "negative influence on client activity levels."
Yum! Brands' stock spiked after the fast-food operator topped earnings expectations late Monday, thanks to sales growth in China.
Coca-Cola shares edged higher after the beverage maker topped earnings and sales estimates for the fourth quarter.
Insurance company Unum Group reported a net loss for the fourth quarter, driven largely by a one-time charge.
Walt Disney results are on tap after the bell.
Stocks opened lower amid concerns that Greek politicians might not reach an agreement on reforms needed to secure fresh bailout money and avoid a default. But traders said the tone improved after reports suggested that progress has been made in the negotiations.
Prime Minister Lucas Papademos is set to meet with leaders from Greece's main political parties to discuss additional job and salary cuts, pension reforms and other policies to decrease public spending. Meanwhile, Greek labor unions held a general strike to protest the measures.
According to the Financial Times, Papademos has submitted a "final draft" of the terms of the bailout to party leaders, who are set to decide on the measures later Tuesday.
The reforms are needed for Greece to receive a second bailout of €130 billion from the European Union, International Monetary Fund and European Central Bank. Without additional funding, Greece will most likely miss a €14.5-billion bond redemption in March, sending shock waves throughout the global financial system.
One expert said investors have been encouraged by recent moves by the European Central Bank to stabilize the banking sector. And an improved outlook for the U.S. economy has helped boost the market so far this year, he added.
On the economic front, the Federal Reserve was to release the consumer credit report for December this afternoon. Analysts surveyed by Briefing.com expected the report to show that consumer credit expanded by $8.5 billion U.S. in December, much smaller than November's $20.4-billion U.S. expansion.
Treasury prices for the 10-year note drooped, boosting yields to 1.97% from Monday’s 1.90%. Treasury prices and yields move in opposite directions.
Oil for February delivery grew $1.81 to $98.72 U.S. a barrel.
Gold futures for April delivery rose $15.10 to $1,740.00 U.S. an ounce.
