The Toronto stock market moved slightly ahead at the open Wednesday, as resources stocks registered unease over the strength of world economic recovery.
The S&P/TSX Composite Index squirted up 12.01 points to begin the session at 11,524.33
The Canadian dollar strengthened 0.33 cents at 98.13 cents U.S.
In corporate news, Vancouver-based miner South American Silver Corp. is protesting Bolivia’s decision to revoke its licence to mine a rich silver deposit in the country and nationalize the project. The licence was cancelled Tuesday following opposition from Quechua Indians who had seized workers employed by the company to press their case.
The stock has lost about half its value in the last two sessions, closing Tuesday at 49 cents on the TSX.
Economically speaking, our trade balance changed drastically in May, according to figures released this morning by Statistics Canada.
The agency said merchandise imports increased 0.4% while exports were fairly flat in May. As a result, Canada's trade deficit with the world widened from $623 million in April to $793 million in May.
ON BAYSTREET
The TSX Venture Exchange inched up 1.58 points to 1,200.94. The Nasdaq Canada index improved 1.69 points to 343.38.
Nine of the 14 Toronto subgroups were better at the outset, led by information technology, up 0.9%, while energy and consumer staples each hiked 0.8%.
The five laggards were weighed by gold, off 1.5%, materials, down 1.1%, and the metals and mining group, sliding 0.4%.
ON WALLSTREET
U.S. stocks opened mixed Wednesday, the Dow Jones drifting into the red for a fifth straight day, as investors geared up for minutes from the Federal Reserve's meeting and digested Spain's announcement of drastic cuts as it aims for fiscal responsibility.
The Dow Jones Industrials faded 4.32 points to 12,648.80
The S&P 500 added 2.93 points to 1,344.40. The Nasdaq Composite Index crawled up 0.69 points to 2,903.02.
The Fed will release the minutes of its latest policy-making meeting Wednesday afternoon. Investors will be sorting through the report to gain insight into the central bank's latest decision to extend its Operation Twist program through the end of the year and for clues about whether any further central bank intervention is looming.
Investors have been watching for any signs of another round of quantitative easing -- this time called QE3.
Investors also welcomed a renewed Spanish focus on fixing its debt dilemma. In a speech to parliament, Prime Minister Mariano Rajoy said the country would cut €65 billion ($79.6 billion U.S.) in less than three years by reducing government and raising taxes. Meeting budget deficit reduction targets would require austerity and more efficiency, he said.
The speech came after European finance ministers agreed late Monday to offer the struggling country an initial €30 billion by the end of the month to help bail out its troubled banks. Yields for Spanish 10-year bonds, which have hovered around the perilous 7% level in recent weeks, fell to 6.64% Wednesday.
When JPMorgan reports earnings Friday, the bank is expected to show how much it has lost so far due to the risk taking of its London Whale trader. The report could generate even more interest if, as The Wall Street Journal reported Wednesday, the bank will make an example of executives behind the errors and reclaim stock from them worth millions.
Economically speaking, the U.S. trade deficit stood $48.7 billion in May, coming in just slightly below expectations. It dropped from $50.1 billion the prior month.
The next report out Wednesday will be wholesale inventories. A survey of analysts expects wholesale inventories for May increased by 0.3%.
The Federal Reserve will release its minutes at 2 p.m. ET.
The price on the benchmark 10-year U.S. Treasury faded a bit, pushing the yield up to 1.51% from 1.50% late Tuesday. Treasury prices and yields move in opposite directions.
Oil for August delivery marched ahead $1.12 to $85.03 U.S. a barrel.
Gold futures for August delivery fell $8 to $1,572.90 U.S. an ounce.
