The Toronto stock market quickly slipped into the negative Tuesday amid mounting anxiety over the euro-zone on word that Greek voters will head back to the polls now that attempts to form a coalition government have failed.
The S&P/TSX Composite Index sank 27.34 points – off its lows of the morning -- to greet noon ET at 11,461.19
The Canadian dollar edged up 0.04 cents to 99.69 cents U.S.
This has raised fears that Greece may walk away from its debts, meaning an exit from the euro currency would be likely, possibly damaging the euro-zone and disrupting the wider global economy.
The energy sector was off as Canadian Natural Resources declined 13 cents to $30.12.
The gold sector was down as Barrick Gold faded 22 cents to $36.43.
The base metals sector was flat as copper extended a series of losses that took the metal to its lowest level since mid-January on Monday. The July contract dipped three cents to $3.52 U.S. a pound on Tuesday.
Copper is viewed as an economic bellwether as it is used in so many industries. But prices have fallen sharply — down over 7% since May 1 alone — amid data showing a slowing global economy. Ivanhoe Mines gained nine cents to $9.28.
Financials were weak with Royal Bank down 29 cents to $52.93.
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 26.89 points to 1,276.94, while the Nasdaq Canada deducted 2.95 points to 371.15.
All but three of the 14 Toronto subgroups were down midday. Information technology and global base metals were each off 1.3%, and the metals and mining group slid 1.1%.
The three stalwarts were telecoms, up 0.7%, industrials, ahead 0.5%, and utilities, eking up 0.1%.
ON WALLSTREET
U.S. stocks were on either side of the breakeven line Tuesday as investors digested mixed news out of Europe.
The Dow Jones Industrials progressed 59.26 points by noon, to 12,754.60
The S&P 500 added 4.41 points to 1,342.76. The tech-rich Nasdaq Composite Index picked up 26.21 to 2,928.79.
Avon Products said that Coty has withdrawn its bid for the company, less than a week after it had upped its offer with backing from Warren Buffett's Berkshire Hathaway.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 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 forecast 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 investor demand 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 a Tuesday filing with the Securities and Exchange Commission.
JPMorgan Chase shareholders gathered in Tampa, Fla., for the bank's annual meeting. The shareholder meeting comes just days after the bank disclosed a $2-billion U.S. trading loss, an event that led to the departure of its chief investment officer and forced CEO Jamie Dimon to apologize for what he called "a terrible mistake."
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 fell back 30 cents to $94.48 U.S.
Gold futures for June delivery dropped $4.60 to $1,557.50 U.S. an ounce.
