Stock markets in Canada’s biggest centre took a bit of a dive at the open on Wednesday, as commodities dropped on worries about the Chinese credit market.
The S&P/TSX composite index fell 42.12 points to open Wednesday at 14,225.11
The Canadian dollar sank another 0.29 cents at 89.75 cents U.S.
A fall in copper to near four-year lows compounded increasing concern about China's economic slowdown, sending a wave of unease through world financial markets.
CIBC raised the target price on Detour Gold to $12.50 from $10.50, saying the company has the financial strength to support ongoing ramp-up activities at Detour Lake and reduce debt. Detour shares began the day up 31 cents, or 3.1%, to $10.21.
CIBC also raised the target price on DeeThree Exploration to $12.00 from $11.50, based on the company's 95% increase in reserves and a strong recycle ratio. DeeThree shares stepped back 18 cents, or 2%, to $8.93.
However, the bank cut the target price on Transcontinental Inc. to $16 from $17, citing modest first-quarter results. Transcontinental shares demurred 31 cents, or 2.1%, to $14.48.
ON BAYSTREET
The TSX Venture Exchange eked up 1.15 points to 1,044.46
All but four of the 14 Toronto subgroups were lower in the first hour, weighed mostly by telecoms, down 1.4%, while energy and information technology stocks slid 0.9% each.
The four gainers were led by gold, shining 2.5% brighter, materials, up 1.4%, and global base metals, advancing 1.1%.
ON WALLSTREET
Major U.S. markets were all lower in the first hour of trading on Wednesday. But the losses were modest compared with the declines in Europe and Asia, where many indexes were down more than 1%.
The Dow Jones Industrial Average erased 44.34 points to start Wednesday at 16,306.91
The S&P 500 index dipped 7.12 points to 1,860.51. The NASDAQ faltered 16.50 points to 4,290.69.
Stocks have drifted lower this week, with little economic or corporate news to set the tone.
In corporate news, federal prosecutors are reportedly investigating General Motors over its handling of ignition switch problems that have been linked to 13 deaths. The stock was little changed Wednesday morning after plunging 5% Tuesday.
Plug Power and rival fuel cell stock Ballard Power Systems rebounded a bit early Wednesday after plummeting Tuesday. FuelCell Energy was down dramatically again though. The companies are considered highly speculative and have enjoyed a massive run as of late.
Prices for 10-year U.S. Treasuries were higher, reducing yields to 2.73% from Tuesday’s 2.77%. Treasury prices and yields move in opposite directions.
Oil prices plunged another $1.35 to $98.68 U.S. a barrel.
Gold prices spiked $22.00 to $1,368.70 U.S. an ounce.
