Equity markets in Toronto opened lower on Wednesday, led by mining stocks, as fresh doubts over the resolution of the U.S. fiscal crisis hurt investor sentiment.
The S&P/TSX Composite Index fell 94.26 points to start Wednesday at 12,017.37
The Canadian dollar lost 0.11 cents to 100.47 cents U.S.
GI Group Inc reported a fourth-quarter loss due to costs associated with its acquisition of Logica.
Research In Motion Ltd has lost a contract dispute over the use of Nokia patents in a case which could halt sales of its BlackBerry phones if it does not reach a deal to pay royalties to the Finnish company. RIM shares were trimmed 18 cents to $10.52 in early trading.
China's state-owned CNOOC Ltd and its Canadian takeover target Nexen Inc have withdrawn and resubmitted an application for U.S. approval of their $15.1-billion deal, as Canada gets close to its decision on whether to approve the transaction. Nexen shares dipped two cents to $24.08.
ON BAYSTREET
The TSX Venture Exchange dipped 2.20 points to 1,203.97
All 14 Toronto subgroups were lower at the outset. Materials and gold were off 1.6% each, while metals and mining group descended 1.5%.
ON WALLSTREET
U.S. stocks opened modestly lower Wednesday, as investors remain on edge over the contentious fiscal cliff negotiations.
The Dow Jones Industrials tailed off 107.05 points to 12,771.10.
The S&P 500 moved 9.10 points lower to 1,389.84 and the Nasdaq Composite Index fell 29.97 points to 2,937.82.
Senate Majority Leader Harry Reid said late Tuesday that members of Congress have made little progress in hammering out the terms necessary to avoid triggering a slew of year-end tax increases and spending cuts.
His comment sparked a late-day selloff Tuesday.
Investors are unwilling to place any big bets until they get more clarity about what lawmakers plan to do. And with Dec. 31 right around the corner, most experts say trading could be choppy for the rest of the year.
In corporate news, big box retailer Costco announced a special dividend, which will pay shareholders a total of $3 billion U.S. on Dec. 18. Shares rose nearly 5%.
Costco becomes the latest company to move dividend payments in calendar year 2012 as taxes on the payments to shareholders are set to rise on Jan. 1. Costco rival Wal-Mart is among a number of companies speeding up those payments.
A number of companies, including U.S. clothing retailer American Eagle reported quarterly results before the bell.
Shares of Green Mountain Coffee Roasters jumped 23% after the K-cup maker issued a better-than-expected outlook for the upcoming fiscal year late Tuesday.
Coming up Wednesday, investors will get a look at the health of the housing market at 10 a.m. ET, when the Census Bureau releases October data on new home sales. At 2 p.m. ET, the Federal Reserve will release the October edition of its Beige Book, a survey of regional economies.
Treasury prices gained ground, driving yields down to 1.61% from Tuesday 1.64%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.39 to $85.79 U.S. a barrel.
Gold prices plummeted $31.10 an ounce to $1,711.20 U.S.
