Equity markets in Toronto approached noon EDT on Wednesday slightly below their opening, after oil prices fell due to a bigger-than-expected U.S. crude inventory build, with escalating tensions between the United States and China further denting sentiment.
The S&P/TSX Composite Index gave back 9.67 points to midday to 16,153.29.
The Canadian dollar eked higher 0.21 cents at 74.57 cents U.S.
Iamgold said on Tuesday it is restarting operations at its Rosebel gold mine in Suriname that it shut in June after union leaders issued a stop work order in response to employees testing positive for coronavirus.
Shares in Iamgold moved into lunch hour up 17 cents, or 2.6%, to $6.60.
Canadian National Railway on Tuesday reported a quarterly profit that edged past analysts' estimates as its cost-cutting moves helped it weather lower shipment volumes due to the COVID-19 pandemic. CNR shares had gained $2.05 by noon hour, or 1.6%, to $130.74.
French TGV high-speed train maker Alstom’s Chief Executive said he expects to secure European Union approval by the end of the month to buy Bombardier's rail business. Bombardier, meanwhile, advanced 4.5 cents, or 9.9%, to 50 cents.
National Bank of Canada cut the rating on Boralex to sector perform from outperform. Boralex shares fell $1.14, or 3.3%, to $33.71.
RBC cut rating on Cascades to underperform from sector perform. Cascades shares slid 56 cents, or 3.6%, to $15.20.
National Bank of Canada cut the rating on Northland Power to sector perform from outperform. Northland shares went south 58 cents, or 1.6%, to $35.83.
On the economic beat, Statistics Canada reported Wednesday the Consumer Price Index rose 0.7% on a year-over-year basis in June, up from a 0.4% decline in May. On a seasonally adjusted monthly basis, the CPI increased 1.0% in June, following a 0.1% increase in May.
ON BAYSTREET
The TSX Venture Exchange slid 1.21 points, midday to 694.55.
The 12 TSX subgroups were evenly divided, with real-estate climbing 1.3%, consumer discretionary moving up 1.2%, and gold shinier 1%.
The half-dozen laggards were weighed most by energy, collapsing 3.1%, communications, down 1.1%, and utilities, off 0.8%.
ON WALLSTREET
Stocks rose slightly Wednesday as news of a coronavirus vaccine deal between the U.S. government and Pfizer and BioNTech offset rising U.S.-China tension.
The Dow Jones Industrials acquired 15.75 points to 26,915.55.
The S&P 500 progressed 10.41 points to 3,267.71.
The NASDAQ gained 16.07 points to 10,696.92.
Traders also braced for the latest earnings reports from Microsoft and Tesla, which are set for release after the bell.
Microsoft has been one of the market stalwarts this year during the pandemic, surging more than 30% in that time period. Wall Street is also awaiting Tesla’s results, which could make the company qualify to become an S&P 500 constituent.
Other companies that have reported earnings include Snap and United Airlines. Shares of Snap dropped more than 8% after the social media company reported fewer-than-expected daily active users.
Shares of United Airlines dipped 1% after the company reported a net loss of $1.62 billion for the second quarter. The coronavirus pandemic’s impact on travel fueled an 87% year-over-year revenue decline for the Chicago-based airline.
The U.S. State Department abruptly ordered China to close its consulate in Houston. Foreign ministry spokesperson Wang Wenbin condemned the action and warned of firm countermeasures if the U.S. does not reverse its decision. The closure comes as relations between the two largest World economies have deteriorated during the coronavirus pandemic.
However, market bearishness was kept in check after the U.S. agreed to pay Pfizer and German-partner BioNTech $1.95 billion to produce 100 million coronavirus vaccine if it proves to be safe and effective. The Department of Health and Human Services added the U.S. can acquire an additional 500 million doses of the drug under the agreement.
Pfizer rose more than 2%. BioNTech’s U.S.-listed shares gained 7.5%.
Prices for the 10-Year Treasury gained by noon, lowering yields to 0.59% from Tuesday’s 0.60%. Treasury prices and yields move in opposite directions.
Oil prices slid eight cents to $41.84U.S. a barrel.
Gold prices thundered ahead $25.70 to $1,869.60 U.S. an ounce.
