Toronto’s main stock index opened a shade lower on Tuesday, weighed by lower commodity prices, which fell after news of France's credit rating downgrade clouded the outlook for the euro-zone.
The S&P/TSX Composite Index opened Tuesday lower by 21.87 points to 12,018.53
The Canadian dollar slid 0.02 to 100.35 cents U.S.
China's state-owned CNOOC Ltd has accepted management and employment conditions set by the Canadian government to win approval for its $15.1-billion takeover of Nexen Inc, according to sources close to the matter. Nexen shares began Tuesday up five cents to $25.37.
On the economic slate, Statistics Canada revealed this morning that things are not well in the wholesale trade. The agency reported that wholesale sales fell 1.4% to $48.8 billion in September, the third drop in four months.
ON BAYSTREET
The TSX Venture Exchange took on 1.66 points to 1,251.62
All but two of the 14 Toronto subgroups were lower, weighed mostly by global base metals, the metals and mining group, and real-estate, each down 0.5%.
The two stalwarts were information technology and consumer discretionary stocks, each up 0.1%.
ON WALLSTREET
Hewlett-Packard dragged U.S. stocks lower at the start of trade Tuesday.
The Dow Jones Industrials dropped 35.94 points to begin Tuesday at 12,760
Hewlett-Packard shares plunged 14%, after the company reported quarterly results that included a multi-billion-dollar writedown.
The S&P 500 doffed 3.75 points to 1,383.14, and the Nasdaq Composite Index fell 4.38 points to 2,911.70
But stripping out the PC maker's dismal performance, stocks were little changed as investors backed off a recent rally and turned their attention back to Europe's sovereign debt worries.
Shares of Best Buy dropped more than 7% after the electronics retailer continued to show signs of struggling as it reported earnings and sales that missed forecasts. Best Buy also cut its outlook.
Green Mountain Coffee surged 10% after the company announced the appointment of a new CEO, Brian Kelley, effective December 3.
Krispy Kreme Doughnuts Inc stock jumped more than 10% at the open, after Monday night's quarterly results that beat expectations.
Euro-zone finance ministers were meeting Tuesday to discuss the latest release of bailout funds for Greece, which the country needs to stave off default. They meet as Moody's downgraded France’s credit rating stripping the country of its coveted AAA rating due to worries about economic weakness.
Escalating violence in the Middle East between Israelis and Palestinians continues to be a global concern. Oil prices had been moving up amid growing worries about a possible ground war in Gaza.
Economically speaking, there were signs of a recovering U.S. housing market. The Census Bureau reported housing starts rose to the highest level in four years. But housing permits declined slightly to an annual rate of 866,000 last month, less than the 870,000 expected.
At 12:15 p.m. ET, Federal Reserve Chairman Ben Bernanke will speak at the Economic Club of New York.
The price on the benchmark 10-year U.S. Treasury fell a bit, lifting yields to 1.62% from Monday’s 1.61%. Treasury prices and yields move in opposite directions.
Oil prices subsided 92 cents to $88.36 U.S. a barrel.
Gold prices erased $3.20 an ounce to $1,731.20 U.S.
