Uncertainty gripped Toronto's main stock index as investors pondered a somewhat tepid outlook given by the U.S. Federal Reserve, and events from Europe worked into the mix.
The S&P/TSX Composite Index gave back 54.36 points to begin the mid-week session at 11,705.58, following Tuesday’s 147-point hammering.
The Canadian dollar let go of 0.58 cents to 96.13 cents U.S.
Among Canadian stocks to watch this morning, Agrium Inc., which plans to spend about $1.5 billion to increase its potash production capacity by 50%, as it looks to gain from continued strength in crop prices.
News giant Thomson Reuters Corp. has offered concessions to settle a two-year E.U. anti-trust investigation into the use of proprietary codes to access financial data, the European Commission said.
Auto parts whiz Magna International Inc. said its unit will open a new facility in Phoenix to produce components for the solar market by year's end.
On matters economic, Wednesday is a busy day in Canada, what with new motor vehicle sales rolling in. Statistics Canada says the number jumped in October by 3.3% to 139,549 units, reflecting a greater number of new cars AND trucks being driven off the lots.
Manufacturing news was not so cheery. The nation’s number-crunchers said manufacturing sales fell 0.8% in October, ending a three-month win streak. The reduction in sales largely came from non-durable goods manufacturers, whose sales fell 1.8% in October.
Leading indicators rounded things out, with the figure ballooning 0.8% in November, the largest increase in five months. The manufacturing sector posted broad gains after slowing in recent months. Household spending was mixed, while the stock market continued to decline.
ON BAYSTREET
The TSX Venture Exchange settled 17.87 points to 1,440.56, while the Nasdaq Canada index was down 4.89 points to 368.96
In all, 10 of the 14 Toronto subgroups began the day lower. Materials sank 1.8%, gold stocks were off 1.7%, and energy issues dropped 1%.
The four gainers were led by consumer staples and telecoms, each up 0.3%, and financials, inching up 0.2%.
ON WALLSTREET
In New York, stocks endured a lower open Wednesday after the Federal Reserve said it would not be taking action to counter Europe's debt crisis.
The Dow Jones Industrials doffed 66.22 points to begin the day at 11,888.70.
The S&P 500 fell 4.01 points, to 1,221.72, while the Nasdaq Composite moved downward 27.30 points to 2,551.97.
U.S. stocks ended in the red Tuesday, giving up an earlier rally, after the Federal Reserve kept rates unchanged and issued a tepid outlook.
Shares of First Solar tumbled 18% in premarket trading after the solar power equipment maker lowered its 2011 sales and earnings guidance.
Shares of electronics retailer Best Buy got slammed Tuesday after the company reported earnings that fell far short of forecasts.
Netflix's stock fell Tuesday, a day after spiking on chatter that the company could be acquired by Verizon On Monday, a spokesman for Netflix said the company doesn't comment on speculation.
On the economic front, the U.S. Mortgage Bankers Association said mortgage applications for the week ending Dec. 10 rose 4.1%.
November import prices rose 0.7%, which is the largest monthly increase since April. Export prices ticked up 0.1%, according to the U.S. Bureau of Labor Statistics.
The price on the benchmark 10-year U.S. Treasury inched up, pushing the yield down to 1.95% from 1.96% late Tuesday. Treasury prices and yields move in opposite directions.
Oil for January delivery shed $2.36 to $97.78 U.S. a barrel.
Gold futures for February delivery fell $25.40 to $1,637.70 U.S. an ounce.
