Shares in Canada’s biggest stock markets went slightly south, as prices of commodities, including gold and oil, stabilized after China's economic growth in the fourth quarter came slightly better than the markets had expected.
The S&P/TSX composite index began Tuesday’s trading off 9.92 points to 14,302.58
The Canadian dollar retreated 0.85 cents to 82.90 cents U.S., ahead of the Bank of Canada's announcement on interest rates on Wednesday.
Canada's oilsands companies are perilously close to operating at a loss after six months of plunging crude prices, yet many say they have no plans to cut production at their vast projects in northern Alberta.
Indeed, Syncrude and Canadian Natural Resources are planning to boost production, in the expectation economies of scale will cut their cost per barrel. Syncrude is private, but Natural Resources shares dipped 48 cents, or 1.4%, to open at $33.93.
CIBC raised the rating on Dundee Precious Metals to outperform from sector perform. Dundee shares hiked 35 cents, or 10.5%, to $3.67.
HSBC raised the rating on First Quantum Minerals to overweight from neutral. First Quantum shares gained 24 cents, or 1.8%, to $13.64.
CIBC raised the rating on Endeavour Silver to outperform from sector perform. Endeavour warmed to the news, adding 34 cents, or 10.5%, to $3.58.
Speaking of things economic, Statistics Canada reported this morning that manufacturing sales dipped 1.4% in November, reflecting lower sales of motor vehicles and chemicals.
ON BAYSTREET
The TSX Venture Exchange gained 3.49 points to 676.15.
Eight of the 14 Toronto subgroups were higher soon after the opening bell, led by gold, up 3.7%, materials, gaining 2.5%, and real-estate, picking up 0.6%.
The half-dozen laggards were weighed down by energy, down 1.9%, information technology, sliding 0.2%, and industrials, off 0.1%.
ON WALLSTREET
U.S. stocks turned lower on Tuesday, as the price of oil dropped and investors considered fourth-quarter earnings from Halliburton, Morgan Stanley and others after a long holiday weekend.
The Dow Jones Industrials lost 60.95 points to 17,450.62,
The S&P 500 slid 3.85 points to 2,015.57, with energy the worst performer of its 10 major sectors. The NASDAQ index moved down a point to 4,633.38
U.S. markets were shuttered Monday for Martin Luther King Day.
Stocks held near session lows as a gauge of home builder sentiment came in at 57 in January versus 58 in December.
Halliburton gained in early New York trading after the oilfield-services supplier reported a quarterly profit that beat estimates.
Delta Air Lines got lift after the carrier posted earnings above estimates; Morgan Stanley dropped after the brokerage tallied earnings below expectations, and FXCM slid after the currency brokerage detailed its loan from Leucadia National Corp.
Crude-oil prices dropped as the International Monetary Fund cut is outlook for global economic growth for 2015 and 2016, projecting growth of 3.5% this year and 3.7% for next. Both were down 0.3 percentage points from prior estimates.
However, earnings and economic reports all take a back seat to the European Central Bank, which is expected to announce a program of government bond purchases, or quantitative easing, on Thursday.
Prices for 10-year U.S. Treasuries lost ground, raising yields to 1.79% from Friday’s 1.78%. Treasury prices and yields move in opposite directions.
Oil prices dropped off $2.21 per barrel to $46.48 U.S.
Gold prices hiked $10.90 an ounce to $1,287.90 U.S.
