Canada's main stock index took a nosedive at Tuesday’s open, as markets focused on developments in Europe ahead of a key European Union summit on Friday. Moves, or lack of them, by the Bank of Canada, also played into the mix.
The S&P TSX Composite dipped 69.64 points to 12,049.69
The Canadian dollar regained 0.30 cents to 98.65 U.S. cents, as the central bank did as expected, keeping its overnight interest rate at 1% this morning, predicting that Europe's recession would be "more pronounced" than previously thought but giving no suggestion of an impending rate cut.
Canadian companies to watch this morning include Bank of Montreal, which said its fourth-quarter profit rose 21%, powered by loan growth and the acquisition of Wisconsin-based Marshall & Ilsley.
Oil and gas driller Precision Drilling raised its capital budget for 2012 by 54% to $1.14 billion.
Bank of Nova Scotia says it’s creating a new top-level executive role to deal with the global financial industry's increasingly complex regulatory environment.
Kinross Gold Corp. announced it reached a tentative agreement with the government of Ecuador that will allow it to develop its Fruta del Norte project there.
Major Drilling Group said its second-quarter profit more than doubled as demand for its exploration drilling services remained strong.
Network equipment maker Sandvine Corp. said it expects its fourth-quarter revenue to fall 20-22% from last year, hurt by budget reductions and poor performance amongst some of its largest customers.
Movie screen whiz Imax Corp. has signed deals to open seven more theatres in China and two in Indonesia.
Gold producer Nevsun Resources Ltd. said United Nations sanctions against Eritrea should have no direct impact on the company or its mining operations in the African country
Economically speaking, the Bank of Canada did as expected, keeping its overnight interest rate at 1% this morning, predicting that Europe's recession would be "more pronounced" than previously thought but giving no suggestion of an impending rate cut.
Elsewhere, figures released this morning by Statistics Canada revealed the value of Canadian building permits unexpectedly soared by 11.9% in October from September, as strength in Ontario helped end a three-month losing streak.
ON BAYSTREET
The TSX Venture Exchange faded 12.62 points to 1,540.73, while the Nasdaq Canada index sliced off 0.70 points to 395.26
All but two of the 14 Toronto subgroups started the day in the red. Energy and gold shed 1.3% each, while financials docked 1.2%.
The two laggards were metals and mining, up 1.8%, and information technology, nosing up 0.1%.
ON WALLSTREET
In New York, stocks edged higher Tuesday morning, as investors remain cautious after S&P issued a euro-zone warning.
The Dow Jones Industrials began the day positive by 24.56 points to 12,122.40
The S&P 500 tacked on 0.42 points, to 1,257.50, while the Nasdaq Composite added 2.20 points to 2,657.96
U.S. stocks rose Monday but finished below their highest levels of the day, following reports that Standard and Poor's may put euro-zone nations on watch for a possible downgrade.
S&P turned rumors to reality after Monday's closing bell, placing 15 out of 17 euro-zone members on "creditwatch negative" -- meaning that the countries have a 50% chance of being downgraded within 90 days.
Shares of Darden Restaurants fell more than 8% in premarket trading after the company, which operates Red Lobster, Olive Garden and Longhorn Steakhouse chains, issued a dour outlook for the quarter and fiscal year.
Shares of Taiwanese phone maker HTC were sharply lower ahead of a ruling on a key Apple patent suit. On Tuesday, a six-member panel at the International Trade Commission in Washington will rule on whether HTC's phones have violated two Apple patents.
The price on the benchmark 10-year U.S. Treasury faded a bit, nudging the yield up to 2.06% from 2.05% late Monday. Treasury prices and yields move in opposite directions.
Oil for January delivery gave back five cents to $101.94 U.S. a barrel.
Gold futures for December delivery fell $11.10 to $1,723.50 U.S. an ounce.
