Stocks in Toronto continued their downward progress on Wednesday after reports of a buildup of Russian troops near the Ukraine border dampened investors' risk appetite across global markets.
The S&P/TSX composite index moved lower 3.85 points, to open Wednesday at 15,183.86.
The Canadian dollar regained 0.18 cents at 91.41 cents U.S.
China's decision to investigate two Canadians for suspected spying highlights a sharp and unexpected deterioration in bilateral ties just months ahead of a trip by Canada's Prime Minister Stephen Harper to Beijing.
Canada and the European Union have finalized the text of a proposed free trade deal after months of disagreements, but implementation is still about two years away.
Oil sands producer Athabasca Oil reported a bigger quarterly loss as it set aside $49 million to settle some claims by PetroChina Co Ltd's Phoenix Energy Holdings Ltd. Athabasca shares took on 12 cents to $6.24.
National Bank Financial raises target on TMX Group to $63 from $60, with a sector perform rating. TMX, the company that runs the Toronto Stock Exchange, dropped 82 cents to $56.28.
CIBC cut the target on Avigilon Corp. to $45 from $50, with an outperform rating. Avigilion shares gained 23 cents to $24.36.
On the economic front, Statistics Canada reported this morning that merchandise exports rose 1.1% in June, while imports declined 1.8%. So, Canada's trade surplus with the world widened from $576 million in May to $1.9 billion in June.
ON BAYSTREET
The TSX Venture Exchange slipped 2.21 points to 991.66
Eight of the 14 Toronto subgroups were lower, as metals and mining declined 0.6%, industrials sank 0.5%. and utilities ditched 0.4%.
The half-dozen gainers were led by gold, up 1.5%, materials, up 0.8%, and consumer discretionaries, up 0.4%.
ON WALLSTREET
It's a red ink kind of day on Wall Street. Stocks slumped at the opening bell on Wednesday.
The Dow Jones Industrials let go of 3.56 points to 16,425.91
The S&P 500 ditched 0.75 points to 1,919.46. The NASDAQ composite docked 1.09 points to 4,351.75.
All the major U.S. indexes dropped on Tuesday, with much of the retreat blamed on renewed concerns about geopolitical tensions with Russia. The Dow plummeted 140 points and remains in the red on the year.
Shares of Walgreens plummeted 16% after the company confirmed it's taking full control of the U.K.'s Alliance Boots but will not move headquarters out of the U.S. That news disappointed investors, who hoped the pharmacy chain would shift its base to the U.K. to save money on taxes in a controversial deal known as an inversion.
Time Warner plunged about 12% after Rupert Murdoch's 21st Century Fox announced it has given up on pursuing a takeover of the owner of TBS, TNT and CNNMoney. Time Warner shares surged in July when Murdoch's $80-billion U.S. bid first hit the headlines.
Time Warner shares remained under heavy sell pressure even after logging earnings that crushed expectations amid continued HBO strength. Fox, which is set to report after the close, rallied 5% on the deal news and new share buyback.
A tie-up between Sprint and T-Mobile is also now off the table. Shares of both companies plunged on the news. That could leave French telecom company Iliad as the frontrunner to buy T-Mobile. Iliad shares were down 4% in Paris.
Groupon investors are holding a fire sale on Tuesday. The daily deals site plummeted 17.5% after alarming the Street with a wider quarterly loss and a gloomy outlook for the current quarter.
It wasn't exactly a day at the Magic Kingdom for Walt Disney shareholders. Shares of the entertainment giant dropped 1% as stronger-than-expected earnings were countered by higher costs at cash-cow ESPN.
Bank of America ticked 1% higher after the Federal Reserve gave a green light to the bank's plan to boost its dividend. The approval follows an embarrassing math error by BofA.
Apple and Samsung have called a truce on all their non-U.S. patent disputes. Investors may react favorably to this latest development, though the tech giants are still pursuing litigation in the States.
Keurig Green Mountain is among the companies reporting after the close
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.46% from Tuesday’s 2.48%. Treasury prices and yields move in opposite directions.
Oil prices gathered 44 cents to $97.82 U.S. a barrel.
Gold prices ballooned $24.00 to $1,309.30 U.S. an ounce.
