The Toronto stock market was lower Thursday as indications of further economic deterioration in Europe and Asia took the shine from expectations that the U.S. Federal Reserve may be ready to deliver another round of stimulus.
The S&P/TSX Composite index dipped 24.26 points to approach noon at 12,094.73.
The Canadian dollar weakened 0.14 cents to 100.73 cents U.S.
Commodity prices headed higher, though Suncor Energy declined 48 cents to $31.25.
The base metals sector lost ground with the September copper contract four cents higher at $3.50 U.S. a pound. HudBay Minerals gave back 12 cents to $8.62.
Financials also weighed on the TSX as Manulife Financial fell 16 cents to $11.
Elsewhere, CGI Group fell 32 cents to $25.51. In the gold patch, Goldcorp Inc. improved by 48 cents to $40.44.
On the economic ledger, Statistics Canada says those drawing regular Employment Insurance benefits continued its downward trend, edging down to 507,600 from 512,100 in May.
ON BAYSTREET
The TSX Venture Exchange eked up 4.66 points to 1,250.32. The Nasdaq Canada gained 2.55 points to 351.15.
Of the 14 Toronto subgroups, eight were lower, weighed down by energy, down 0.8%, industrials, down 0.7%, while financials trailed yesterday’s close by 0.3%
The half-dozen gainers were led by gold, up 1.2%, health-care, advancing 1.1%, and materials, strengthening 0.5%.
ON WALLSTREET
Stocks fell Thursday, after reports showed a slowdown in manufacturing in China and Europe, along with one showing a surprise jump in U.S. jobless claims.
The Dow Jones industrial average fell 99.86 points to break for lunch at 13,072.90
The S&P 500 index swooned 9.68 points to 1,403.81, while the tech-heavy Nasdaq Composite Index shrank 20.76 points to 3,052.91.
Shares of Big Lots tumbled more than 20% after the retailer reported earnings that fell far short of forecasts and lowered its guidance.
Meanwhile, shares of computer maker Hewlett-Packard tumbled nearly 7%, making it the biggest loser on the Dow. HP reported better-than-expected quarterly earnings after the close Wednesday, but issued disappointing sales and revenue forecasts.
Shares of Guess plunged 19% after the retailer reported earnings that missed expectations and cut its outlook for the year.
Manufacturing hit a nine-month low in China and contracted across the euro-zone for the seventh month in a row.
Investors will be keeping tabs on Europe as French President Francois Hollande and German Chancellor Angela Merkel meet to discuss Greece. Greek Prime Minister Antonis Samaras has reportedly been pushing for a two-year extension of the country's bailout program.
Investors also parsed through the latest reading on the U.S. labour market, with a report on unemployment claims showing a surprise increase for the latest week.
Wall Street trading volume is expected to stay light for the rest of August. U.S. stocks ended mixed Wednesday, as minutes from the Federal Reserve's July meeting sparked hope for further stimulus measures.
The minutes show the central bank is considering two key measures to boost the U.S. economy. Investors are likely to stay focused on the Fed, with attention on the Kansas City Fed's annual symposium in Jackson Hole, Wyo. next week.
On matters economic, the U.S. Labor Department released its weekly report on first-time unemployment claims Thursday, revealing an increase to 372,000 from the previous week's revised figure of 368,000. That was more than the 365,000 that economists had expected.
The Census Bureau reported new home sales rose 3.6% to a seasonally adjusted annual rate of 372,000 in July. That's better than the 368,000 economists had expected.
The price on the benchmark 10-year U.S. Treasury gained, pushing the yield down to 1.67% from Wednesday’s 1.72%. Treasury prices and yields move in opposite directions.
Oil for September delivery gained 41 cents to $97.67 U.S. a barrel.
Gold futures for December delivery rose 35 cents to $1,675.50 U.S. an ounce.
