Toronto's main stock index was sharply lower on Wednesday morning as slumping gold prices dragged down gold miners and the index's materials group.
The S&P TSX Composite Index closed down 98.54 points to 13,152.13
The loonie was up 0.03 cents at 98.81 cents U.S.
Gold prices skidded from recent record highs, falling to a one-week low against a stronger U.S. dollar. Goldcorp fell 2.9% to $45.99, followed closely by Barrick Gold, which was down 2.4% at $53.47.
The energy group, which had risen for five straight sessions, gave back some of its gains amid easing oil prices. Suncor Energy fell 1.6% to $36.06.
Tech issues slid as Research In Motion fell 1.2% to $62.00. The BlackBerry maker is coming off some recent gains following downgrades by analysts on Tuesday.
Among financials, Manulife Financial was the biggest market mover on the positive side, rising 4% to $15.98. Toronto-Dominion Bank was up 1.4% at $73.20.
In individual company news, Rona shares were up 2% at $13.77 after the hardware store chain declared a cash dividend under a new policy of paying dividends semi-annually.
Dollarama, Canada's largest dollar store operator, faded 1.1% to $29.08 after it posted a large jump in third-quarter profit.
Laurentian Bank of Canada rose 0.4% to $45.60 after announcing an 8.3% hike in its dividend.
ON BAYSTREET
The TSX/Venture Exchange eased 21.11 points to 2,096.10, while the Nasdaq Canada index lost 8.97 points to 758.13
In Toronto, all but one of the 14 subgroups were lower. Metals and mining slid 2.4%, materials were off 2%, while gold stocks were off 1.9%.
The lone stalwart was in the financials group, up 0.6%,
ON WALLSTREET
In New York, equities held modest gains Wednesday as a rebound in bank shares offset weakness in commodities and concerns about rising interest rates in the Treasury market.
The Dow Jones Industrials closed 13.32 points up to 11,372.50
The S&P 500 moved up 4.53 points to 1,228.28. The Nasdaq Composite Index gained 10.67 points to 2,609.16.
Bank of America and JPMorgan led gainers on the Dow, while McDonald's dragged on the blue-chip index. Technology shares Intel and IBM were also strong.
Shares of Chevron and Alcoa were under pressure as prices for oil and precious metals fell. The weakness in commodities came as the dollar rose against the euro, making assets priced in the U.S. currency less attractive to some investors.
Shares of two Chinese technology companies, Youku.com and Dangdang.com, were sharply higher after both companies made their debut in the U.S. market.
Youku.com, an Internet video provider similar to Youtube.com, jumped 167% to $27.89 U.S. The Beijing-based company priced its offering of more than 15 million U.S.-listed shares at $12.80 U.S. each.
Shares of Dangdang.com surged 86% to $28.10 U.S., after the consumer e-commerce company priced its IPO at $16 per U.S. depository share.
Costco reported an increase in both sales and profit for its fiscal first quarter, which beat estimates. Net income rose 17% to $312 million U.S., compared to $266 million U.S. in the year prior. Earnings per share increased 18% to 71 cents U.S. per share.
Fortune Brands, maker of Jim Beam whiskey, Titleist golf clubs and home security systems, said it will split into three separate businesses -- retaining its liquor operations, spinning off its home products and security unit and selling its golf properties.
With little economic news due, investors remained focused on the deal struck late Monday between President Obama and Republican lawmakers to extend tax cuts for those making more than $250,000 U.S. a year.
Obama touted the compromise, which would also extend unemployment benefits and create a payroll tax holiday for workers, as a boon for middle-class Americans. But at a news conference Tuesday, Obama said he would push to have the tax cuts eliminated for high earners after the two-year extension is over.
Investors are primarily concerned with how the $800-billion U.S. deal will impact capital gains and estate taxes.
Stocks ended mixed Tuesday after optimism over the extension of Bush-era tax cuts faded and Treasury yields spiked.
Interest rates continued to rise Wednesday, with the benchmark 10-year yield near a six-month high.
The price on the benchmark 10-year U.S. Treasury dropped sharply, lifting the yield to 3.24% from Tuesday’s 3.16%. Treasury prices and yields move in opposite directions.
Oil inched scaled back 98 cents a barrel to $88.40 U.S.
Gold futures for February delivery fell $25.80 to end at $1,383.20 U.S. an ounce.
