Canada's main stock index was virtually unchanged Thursday, following a global equity market selloff driven by worries over the possible scaling back of central bank monetary stimulus.
The S&P/TSX Composite Index eked ahead 8.28 points to begin Thursday’s session at 12,118.17
The Canadian dollar regained 0.45 cents to 98.39 cents U.S.
Shares of Canadian grocers are expected to be active after Sobeys parent Empire Co Ltd said on Wednesday it is acquiring Safeway Inc's assets in Canada for $5.7 billion, in a move that will nearly double its reach in the country's western provinces. Empire shares galloped ahead $7.51, or 11.1%, to $75.12.
Mining giant Rio Tinto has agreed to sell its Eagle project to Lundin Mining Corp for $325 million in cash. Lundin shares added 19 cents to $4.17.
Lululemon Athletica Chairman Dennis Wilson sold stock worth $50 million days before shares slumped on the news of CEO Christine Day's surprise departure. Lululemon shares docked five cents to $65.56.
Canada's National Energy Board rejected TransCanada Corporation’s request to review its decision to cut fixed tolls on the company's mainline, a cross-country natural gas pipeline network. TransCanada shares gained 33 cents to $46.46.
On the economic slate, Statistics Canada reported that its New Housing Price Index rose 0.2% in April, following a 0.1% increase in March
ON BAYSTREET
The TSX Venture Exchange fell 3.69 points to 924.51
The 14 Toronto subgroups were evenly split between gainers and losers, metals and mining led the former group, up 1.4%, while information technology was up 1.2% and global base metals gained 1.1%.
The seven laggards were weighed by gold, down 0.8%, health-care, down 0.6%, and consumer discretionaries, down 0.5%.
ON WALLSTREET
U.S. stocks were little changed early Thursday, as investors threw off the fears gripping global markets.
The Dow Jones Industrials eked up 31.83 points to 15,027.10
The S&P 500 index took on 2.76 points to 1,615.28. The tech-rich NASDAQ Composite edged higher 8.78 points to 3,409.21
In corporate news, shares of newspaper publisher Gannett rallied after it said it was buying Belo for $1.5 billion U.S., a deal that will significantly increase the number of television stations it owns. Shares of Belo were also higher, reflecting the 28% premium that the purchase price represents.
Beauty products company Coty will make its public debut on the New York Stock Exchange after raising $1 billion U.S. through an initial public offering that priced share at $17.50 U.S. apiece.
Meanwhile, Safeway shares surged 16% after the grocery chain announced late Wednesday the sale of its Canadian operations to Sobeys for $5.68 billion U.S. Safeway said it will use the proceeds from the sale to pay down $2 billion in debt, buy back stock and support growth elsewhere.
Investors have become increasingly nervous about when the U.S. Federal Reserve and other central banks, particularly the Bank of Japan, will begin curtailing stimulus measures.
Still, investors saw some bright spots in the U.S. economy, after retail sales came in above expectations, and weekly jobless claims dipped more than forecast.
The 0.6% rise in retail sales -- the best reading since February --- was largely due to a jump in auto sales.
Also this morning, the U.S. Census Bureau was to release data on business inventories
Prices for the 10-year U.S. Treasury hiked, lowering yields to 2.19% from Wednesday’s 2.23%. Treasury prices and yields move in opposite directions.
Oil prices were down five cents to $95.83 U.S. a barrel.
Gold prices dumped seven dollars to $1,385.00 U.S. an ounce
