Canada's main stock index fell on Thursday, led lower by the energy sector, which was hurt by a drop in Canadian Natural Resources Ltd after it cut its output forecast.
The S&P/TSX composite fell 39.54 points to end Thursday at 12,191.05
The Canadian dollar fell back 0.40 cents to 99.96 cents U.S., a mite below parity with its American neighbour.
Many investors remain concerned about resolving the issue of the U.S. "fiscal cliff" - a mix of tax increases and spending cuts due to extract some $600 billion U.S. from the economy starting early in the new year. barring a deal on Capitol Hill.
Energy stocks suffered, for example, shares of Canadian Natural fell 3.2% to $27.88 after the country's biggest independent oil and gas producer reported a 57% fall in quarterly profit and cut its full-year forecast for crude oil and natural gas liquids output. It played the biggest role of any single stock in weighing the market lower.
Some of Canada's major banks were also dragging the index downward. Royal Bank of Canada, the country's biggest bank, fell 1.1% to $55.72, Bank of Nova Scotia was down 32 cents or 0.6% at $53.51 and Toronto Dominion Bank lost 72 cents, or 0.9%, to trade at $80.30.
The Canadian market's losses were partially offset by gains in Kinross Gold Corp, up 8.8% at $10.16, and Sun Life Financial, up 3.9% at $25.31.
Kinross on Wednesday posted a third-quarter profit that topped expectations and said it expects to meet the higher end of its production targets for the year.
Sun Life, Canada's number-three life insurer, said after markets closed on Wednesday that it swung back to a third-quarter profit due to better results from investments.
Gold miners made gains as prices for gold surged in a volatile session. Barrick Gold Corp was last trading up 1.1% at $36.56 and Goldcorp Inc rose 0.9% to $44.91.
It’s also been a busy so far on the macroeconomic front, with Statistics Canada reporting our trade shrank with the rest of the world.
The nation’s number cruncher said Canada's merchandise exports rose 1.9% and imports were unchanged in September. As a result, Canada's trade deficit with the world narrowed from $1.5 billion in August to $826 million in September.
On the housing front, the New Housing Price Index rose 0.2% in September, following a similar increase in August.
However, figures released by Canada Mortgage and Housing Corporation showed that the seasonally adjusted annual rate of housing starts fell to 204,100 units in October from 224,000 units in September, confounding experts who predicted a figure of 212,000 last month.
ON BAYSTREET
The TSX Venture Exchange remained positive 7.78 points to 1,298.68
In all, 10 of the 14 Toronto subgroups were lower on the day, weighed down mostly by health-care, 3.8% less robust, while metals and mining and energy were down 1.2% each.
The three gainers were by gold, up 1.3%, while materials gained 0.9%, and telecoms inched up 0.04%.
Information technology stocks were unchanged at the close.
ON WALLSTREET
U.S. stocks sank Thursday, adding to the previous day's sharp declines, as investors continue to worry that political gridlock in Washington will drive the economy off the fiscal cliff.
The Dow Jones Industrials tumbled 121.41 points to end the day at 12,811.30.
The S&P 500 moved down 17.02 to 1,377.51, and the Nasdaq Composite Index staggered 41.70 points to 2,895.58. The retreat comes after stocks tumbled 2% on Wednesday, with the Dow suffering its worst one-day drop of the year.
Financial stocks, which led the post-election decline, regained some ground. Bank of America shares rose 2%, making the stock the best performer on the Dow.
Apple shares fell deeper into bear market territory -- down more than 20% from their all-time-high of $705 U.S. hit in mid-September. The widely-held stock weighs heavily on the Nasdaq and S&P 500.
Following President Obama's re-election Tuesday night, attention has shifted to how lawmakers will address the looming fiscal cliff that threatens to throw the country back into a recession.
After the market closed, online travel company Kayak announced plans to be acquired by Priceline for $40 U.S. a share in cash and stock.
Shares of Groupon fell 13% in extended trading after the daily deals website reported a net loss for the quarter.
Disney reported quarterly and full-year earnings that matched analysts' expectations.
Before the market opened, Wendy's reported weaker-than-expected earnings for the third quarter. But the fast-food chain said same-store sales, a key measure of growth, increased for a sixth quarter in a row, sending shares up 2.5%. McDonald's shares fell after the fast food chain said same-store sales declined 1.8% in October.
On the economic slate, the U.S. government said 355,000 Americans filed for first-time jobless claims in latest week, better than the expectations for 377,000.
The trade deficit for September narrowed to $41.5 billion U.S. Analysts were expecting the gap to widen to $45.4 billion U.S.
The price on the benchmark 10-year U.S. Treasury fell back yet again, lowering the yield back to 1.63% at which it closed Wednesday. Treasury prices and yields move in opposite directions.
Oil prices gained 51 cents at $84.95 U.S. a barrel.
Gold prices acquired $18.80 per ounce to $1,732.80 U.S.
