Stock markets were mixed Tuesday after Greece said it will need to hold new elections after politicians failed to reach an agreement to form a coalition government.
The S&P/TSX Composite Index sank 33.73 points in the first hour to register at 11,454.80
The Canadian dollar edged up 0.05 cents to 99.70 cents U.S.
Suncor Energy and Potash Corp. of Saskatchewan both gained almost 1%
In Canada, reporting companies include Allied Properties Real Estate Investment Trust, Boardwalk Real Estate Investment Trust, Semafo Inc. and Centerra Gold.
On the economic slate, figures released this morning by Canada Mortgage and Housing Corporation indicated that national resale housing activity edged up 0.8% in April.
The agency also said the average home sold for $375,810 across the country last month, a rise of 0.9% from the same month last year.
April home sales were 11.5% higher than where they were the same month a year earlier, partially because sales in April 2011 were lower after buyers rushed to buy the month before ahead of new mortgage rules.
ON BAYSTREET
The TSX Venture Exchange dipped 13.98 points to 1,289.85, while the Nasdaq Canada deducted 0.50 points to 373.70.
All but two of the 14 Toronto subgroups were down at the beginning of trading. Energy stocks dwindled 0.8%, information technology was off 0.7%, and gold slid 0.6%.
The two stalwarts were telecoms, inching up 0.2%, and consumer discretionaries, gaining only 0.1%.
ON WALLSTREET
U.S. stocks started higher Tuesday, but gains were slim as investors digested mixed news out of Europe.
The Dow Jones Industrials progressed but 34.21 points in the first hour, to 12,729.56
The S&P 500 added 4.41 points to 1,342.76. The tech-rich Nasdaq Composite Index picked up 16.82 to 2,919.40.
Avon Products said that Coty has withdrawn its bid for the company, less than a week after it had upped its offer with backing from Warren Buffett's Berkshire Hathaway. Avon's board had said it wanted a week to consider the latest offer but Coty had demanded an immediate answer. Shares of Avon tumbled.
Dow component Home Depot, a bellwether of activity in the nation's troubled home building industry, reported quarterly earnings in line with estimates but issued an earnings forecasts that fell short. The stock dipped.
Shares of daily deals site Groupon surged for a second day. The company reported narrowing losses and better-than-expected sales Monday, giving investors hope that it can steady its ship.
In a sign of strong demand from investors for shares in its upcoming initial public offering, Facebook boosted the target price range for its stock. Facebook now expects to price its shares at $34 to $38 U.S. each, up from the $28 to $35 U.S. range it set earlier this month, according to its latest filing with the Securities and Exchange Commission early Tuesday.
The political instability in Greece has re-ignited fears that the country could exit the euro and imperil Europe's periphery in the process.
Meanwhile, German economic growth came in at 0.5% in the first quarter. That's far better than the 0.2% decline in gross domestic product at the end of last year that had raised fears of Europe's largest economy possibly falling into recession.
German growth also helped other European countries avoid recession, lifting the reading for all of the European Union to 0.1%, and leaving GDP unchanged in the 17-nation euro-zone.
There had been fears that both the E.U. and euro-zone would report their second straight quarter of declining GDP, the common benchmark for an economy in recession. By that standard, 12 of the nations in the E.U. are now mired in an economic downturn.
Economically speaking, reports on retail sales and inflation for April were close to expectations, providing additional support for stocks.
Retail sales edged up 0.1% last month, below the forecast from a survey of economists, after increasing by 0.7% in March.
The Consumer Price Index was flat in April, as expected, after rising by 0.3% in March.
The price on the benchmark 10-year U.S. Treasury inched upward, pushing the yield down to 1.78% from Monday’s 1.79%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil poked ahead 15 cents to $94.93 U.S.
Gold futures for June delivery dropped $4.10 to $1,558 U.S. an ounce.
