Stocks in Canada’s largest centre fell to a one-week low on Wednesday as energy and financial stocks retreated, pressured by lower oil prices and weak Chinese data which weighed on global stock markets.
The S&P/TSX Composite Index dropped 59.8 points – off its lows of the morning -- to greet noon at 14,005.98
The Canadian dollar regrouped 0.03 cents to 76.41 cents U.S.
Suncor Energy declined 2.6% to $35.01
Shares of National Bank of Canada fell 1.5% to $42.89. The bank reported a 48% drop in quarterly profit after it set aside funds to cover loans to oil and gas companies that had turned sour.
The overall materials group, which includes precious and base metals miners and fertilizer companies, fell as Barrick Gold has agreed to pay $140 million to resolve a U.S. lawsuit accusing the gold producer of concealing problems at a South American mine and of fraudulently inflating the company's market value, according to court papers.
The gold producer's shares fell 0.5% to $21.82, while spot gold turned lower
Husky Energy, the country’s number-three-ranked integrated oil company, said it expected to generate free cash flow and may reinstate a cash dividend as crude prices have rallied in recent weeks. Its shares rose 0.5% to $15.21.
Valeant Pharmaceuticals, which has come under scrutiny for its business and accounting practices, said on Tuesday it would host a conference call on June 7 to discuss first-quarter results. Valeant's shares rose 6% to $39.67.
On the economic slate, RBC reported that its RBC Canadian Manufacturing PMI came in at 52.1 during May, above the neutral 50.0 mark and only fractionally lower than the 16-month high of 52.2 recorded in April.
ON BAYSTREET
The TSX Venture Exchange subtracted 4.08 points to 674.01
All but three of the 13 TSX subgroups remained in the red by noon hour, with energy stuttering 1.2%, while the materials and metals and mining groups each gave way 1.1%
The three gainers proved to be health-care, surging 1.1%, utilities, stronger 0.4%, and industrials, eking up 0.1%.
ON WALLSTREET
U.S. stocks traded mostly lower Wednesday, the first trading day of June, as concerns about sluggish global growth weighed.
The Dow Jones Industrials fought to within 12.56 points of breakeven to 17,774.64, with IBM leading decliners and Procter & Gamble the top advancer.
The S&P 500 remained negative 1.02 points at 2,095.94, with energy leading seven sectors lower and consumer staples the top advancer.
The NASDAQ Composite moved into the green 3.99 points to 4,952.05. Shares of Costco and Amazon.com had the greatest positive impact on the NASDAQ. Apple traded more than 0.5% lower.
The ISM manufacturing PMI was 51.3 in May. Consensus estimates from Reuters expect a 50.5 print, barely in expansion territory and off slightly from the previous month's 50.8 read.
April construction spending fell 1.8%.
The final read for May on Markit's manufacturing PMI was 50.7. The flash read was 50.5, down from 50.8 in April.
Other economic data scheduled for release include the Fed's Beige book and May auto sales.
Prices for the 10-year Treasury gained ground, lowering yields to 1.84% from Tuesday’s 1.85%. Treasury prices and yields move in opposite directions.
Oil prices dropped 20 cents a barrel to $48.90 U.S.
Gold prices caved $8.27 to $1,207.05 U.S. an ounce.
