Markets in Toronto opened slightly lower on Wednesday after U.S. Federal Reserve officials hinted the central bank would trim its monetary stimulus program as early as next month.
The S&P/TSX composite index jettisoned 38.35 points to begin Wednesday’s trading at 12,430.97
The Canadian dollar erased 0.46 cents to 95.96 cents U.S.
Valeant Pharmaceuticals International Inc raised its full-year adjusted profit outlook and reported a second-quarter profit, boosted by sales in its skincare acquisitions. Valeant shares increased $1.29 to $100.87.
Air Canada reported a jump of nearly threefold in second-quarter operating profit as margins improved, and said capacity will increase in the current quarter. Air Canada shares galloped 41 cents, or 19.3%, to $2.53.
Brookfield Property Partners LP will buy a privately held U.S. real estate company from Japan's Kajima Corp in a $1.1-billion deal that will increase its industrial real estate portfolio. Brookfield stock dipped 44 cents per share to $38.24.
TransCanada Corp. said on Tuesday it has signed an agreement with Malaysian-owned Progress Energy to transport two billion cubic feet per day of natural gas to underpin the $1.5-billion extension of its NGTL pipeline system in British Columbia. TransCanada shares fell 39 cents to $47.04.
On the economic front, Statistics Canada reported that contractors took out building permits worth $6.6 billion in June, down 10.3% from May and the first decrease in six months.
However, the nation’s number-crunchers added that, despite this decline, the total value of building permits continued to trend upward.
Moreover, Western University’s Ivey Purchasing Managers’ (PMI) by the end of July 2013 stood at 48.4. The corresponding Ivey PMI figure for June 2013 was 55.3; for July 2012, it was 62.8 and July 2011’s was 46.8.
ON BAYSTREET
The TSX Venture Exchange dipped 1.79 points to 911.04
All but four of the 14 Toronto subgroups were lower, weighed mostly by real-estate, off 0.6%, while telecoms and financials each shed 0.5%.
The four gainers were led by gold, up 1%, while materials improved 0.7%, and global base metals gained 0.2%.
ON WALLSTREET
Stocks were in the red Wednesday amid new talk that the Federal Reserve may soon begin to slow the pace of its controversial asset purchases.
The Dow Jones sank 93.96 points to open Wednesday at 15,424.80
The S&P 500 index fell 9.18 points to 1,688.19. The NASDAQ doffed 28.54 points to 3,637.23
Earnings continue to roll in Wednesday. Time Warner raised its guidance and reported a 25% jump in operating income, helped by strong revenue from movie blockbusters like "Man of Steel" and television shows like HBO's "Game of Thrones" and "Girls.
AOL reported earnings and sales that beat estimates, and announced plans to acquire Adap.tv for $405 million U.S.
First Solar shares plunged a day after the solar panel maker widely misses analysts' estimates for both profit and revenue. First Solar also trimmed its outlook.
Tesla Motors and Green Mountain Coffee Roasters are due to report results after the close.
Meantime, it appears statements from Chicago Fed President Charles Evans and Atlanta Fed President Dennis Lockhart on Tuesday about the Fed possibly pulling back on, or tapering, its bond purchases as soon as next month continued to spook investors.
Despite the move lower, U.S. stocks have still gained 18% to 21% so far this year.
Prices for the 10-year U.S. Treasury gained some ground, lowering yields to 2.63% from Tuesday’s 2.64%. Treasury prices and yields move in opposite directions.
Oil prices dropped 19 cents to $105.11 U.S. a barrel.
Gold prices regained 70 cents at $1,283.20 U.S. an ounce.
