The Toronto Stock market was lower Wednesday near midday as concerns about Europe returned to the forefront and the euro fell to a four-month low.
The S&P/TSX index was still struggling by noon ET, but had recovered to within 23.62 points of breakeven at 12,682.76, with commodities mixed and investors also weighing the planned reopening of banks in Cyprus.
The Canadian dollar remained negative 0.06 cents to 98.33 cents U.S.
Metals stocks were hit hard as First Quantum lost 2.7% to $18.94.
Among financials, a group which also struggled, AGF Management fell 5.6% to $10.86.
Energy stocks dipped as Penn West Petroleum docked 2.1% to $10.99.
Specialty food company Premium Brands Holdings Corp. is increasing its quarterly dividend 6.3% to 31 cents per share. Its stock rose 12 cents to $17.79.
Investors received diverging opinions about Agrium Inc. from two major proxy advisory firms. Glass, Lewis & Co. LLC has recommended that its clients vote for all 12 of nominees put forward by the Calgary-based fertilizer company, while Institutional Shareholder Services says they should vote for two of five alternative nominees proposed by dissident shareholder Jana Partners.
Agrium shares fell $1.97 to $98.44.
On the economic calendar, Statistics Canada reported that consumer prices rose 1.2% in the 12 months to February, following a 0.5% advance in January, mostly due to transportation prices, which rose 2.0% on a year-over-year basis in February, after falling 0.5% in January.
ON BAYSTREET
The TSX Venture Exchange dropped 1.19 points to 1,094.84
Nine of the 14 Toronto subgroups were still down by noon, weighed by metals and mining stocks, down 0.9%, financials, down 0.8%, and health-care, 0.6% worse.
The five gainers were led by gold, up 0.8%, materials, ahead 0.3%, and information technology, up 0.2%.
ON WALLSTREET
U.S. stocks tumbled Wednesday as investors remain worried about the European financial system.
The Dow Jones Industrials dipped 40.41 points from Tuesday’s all-time record at 14,519.20
The S&P 500 index backtracked 3.82 points to 1,559.95. The tech-heavy NASDAQ Composite was behind 5.87 points to 3,246.61.
Trading volume on Wall Street is likely to be thin amid the Passover holiday and ahead of Good Friday and Easter.
In corporate news, shares of Cliffs Natural Resources were down nearly 12% in early trading. The stock, which has been the worst performer in the S&P 500 this year, was hit with two analyst downgrades Wednesday.
European markets were down sharply, driven lower by the banking sector. Shares of Deutsche Bank fell 4% on a rumor that the German bank could have its credit rating downgraded.
Some experts said investors are concerned that there will be a bank run in Cyprus when banks reopen Thursday after being closed since March 16. Some form of capital controls will be applied when the banks eventually reopen. Details are due to be published later Wednesday.
The island nation agreed early Monday to raise billions of euros from big depositors at the Bank of Cyprus and Popular Bank of Cyprus, and to shrink its banking sector in return for a €10-billion European Union bailout.
On the economic front, the U.S. National Association of Realtors said pending home sales, a measure of purchases that have not yet closed, fell 0.4% in February. Economists had expected the index to have risen 2%, according to a Briefing.com consensus of economist forecasts.
NAR said the limited number of homes for sale in certain parts of the country was holding the market back. Despite the drop in February from March, the index is up 8.4% versus February 2012.
Prices on the 10-year U.S. Treasury powered ahead, lowering yields to 1.85% from Tuesday’s 1.91%. Treasury prices and yields move in opposite directions.
Oil prices skidded 17 cents to $96.17 U.S. a barrel.
Gold prices hiked $7.20 to $1,602.90 U.S. an ounce.
