Toronto stocks turned slightly higher on Wednesday, recouping some losses from the previous session, amid mild strength in the gold sector. An encouraging U.S. manufacturing report has led to some buying.
The S&P/TSX Composite index closed the day ahead 15.65 points to 11,717.46.
Gold stocks were up, as Seagold added 1% to $24.84, while Barrick Gold picked up 0.6% to $41.70 and Agnico-Eagle Mines gained 0.4% to $56.81.
The base metals sector was up as the March copper contract in New York gained two cents to $3.34 U.S. a pound. Teck Resources gave back 83 cents, or 2.2%, to $37.76.
Cameco Corp. announced Wednesday it had completed the sale its stake in Centerra Gold for $871 million, marking the final stages of the uranium giant's withdrawal from the gold business.
Cameco shares rose six cents to $33.90 while Centerra shares finished unchanged at $10.35.
Shareholders of Castle Gold Corp. have tendered 91% of the company's stock to Argonaut Gold Inc., which offered $1.29 cash each in a deal valued at $102 million. Argonaut plans to acquire remaining shares in first quarter of 2010.
Castle Gold shares added a penny to $1.26 U.S.
Canadian Real Estate Investment Trust has dropped 2.7% to $26.86 after the company acquired a 50% stake in part of the South Edmonton Common shopping centre for $39.2 million.
The Canadian dollar slid 1.14 cents to 94.78 cents U.S.
ON BAYSTREET
Of the 14 TSX subgroups, gainers outnumbered losers eight to six. The global base metals group was the champ, up 1.2%, followed by telecoms, gaining 0.6% and consumer discretionaries, ahead 0.4%.
Real-estate was the poorest off of the laggards, falling 0.8%, while metals and mining stocks were down 0.7% and health-care issues were 0.4% to the bad.
The TSX Venture Exchange regained 9.73 points to 1,492.89, while the Nasdaq Canada index slid 3.43 points to 728.65.
ON WALLSTREET
In New York, stocks churned late Wednesday, pulling back from 2009 highs hit just two days earlier, as a stronger dollar and some end-of-the-year wariness kept the market treading water.
The Dow Jones Industrials was up 3.10 points to finish at 10,548.51, while the broader S&P 500 was up 0.22 points to 1,126.42, while the tech-heavy Nasdaq moved ahead 2.88 points to 2,291.28.
Stocks ended a volatile session modestly lower Tuesday, with the three major indexes breaking a six-session winning streak that had left the market at 15-month highs. That weakness spread into Wednesday's session, the second-to-last trading day of the year.
A stronger U.S. dollar put some pressure on the market as well, dragging on commodity prices and stocks, and pulling down shares of companies that do a lot of business overseas and therefore benefit from a weaker dollar.
After sliding for most of the year versus the euro and yen, the dollar has gained over the last few weeks as investors have bet that the economy is improving.
Trading volume has been low this week, with many market pros and individual investors on vacation. Lighter trading volume can cause increased volatility. All financial markets are closed Friday for the New Year's Day holiday.
Year-to-date, the Dow has risen 20%, the S&P 500 has climbed almost 25% and the Nasdaq has gained 45%, as of Tuesday's close. All three indexes have posted more substantial gains since falling to multi-year lows on March 9 amid the height of the financial crisis.
Any stock market gains accrued next year are expected to be a lot milder, analysts say, as the government stimulus fades at the same time the slow-growing economy struggles to create jobs.
Meanwhile, the consumer spending environment is expected to stay weak, the dollar could firm up and the Federal Reserve is expected to begin raising interest rates in the second half of 2010.
Troubled auto and mortgage financing firm GMAC Financial Services is expected to receive a third round of bailout funds, according to a published report. GMAC is expected to get an additional $3.5 billion U.S. on top of the $13.5 billion U.S. it has already received since Dec. 2008.
Economically speaking, the Chicago PMI, a regional read on manufacturing, rose to 60 in December from 56.1 previously. The improvement was a surprise, with economists surveyed by Briefing.com expecting it to drop to 55.1.
Treasury prices inched up, lowering yields on the benchmark 10-year note to 3.79% from Tuesday’s 3.80%. Prices and yields move in opposite directions.
The price of a barrel of oil gained 45 cents to $79.32 U.S.
Gold prices slipped six dollars to $1,092 an ounce U.S.
