Canada’s largest stock index moved a bit lower Wednesday as commodity prices weakened and traders digested the U.S. Federal Reserve’s latest take on the economy.
The S&P/TSX Composite declined 9.72 points to end the day at 12,260.94, after closing Tuesday at a two-month high
The Canadian dollar shaved off 0.3 cents to 98.12 cents U.S.
The TSX energy sector lost ground as oil prices moved lower as the European Union’s efforts to block imports of Iranian oil appear to be stalling.
Canadian Natural Resources lost $1.15 to $38.36.
Ivanhoe Energy Inc. subsidiary Sunwing Zitong Energy is selling its interest in production from the Zitong block gas discovery in China’s Sichuan Basin to Royal Dutch Shell for up to $160 million U.S.
The base metals component dropped as March copper was unchanged at $3.51 U.S.
Traders were also encouraged by strong revenue figures and a positive outlook from resource giant Alcoa Inc.
First Quantum Minerals was down 70 cents to $22.40 while Teck Resources gained 70 cents to $39.35.
The gold sector was slightly lower while Iamgold gave back 23 cents to $17.45.
The industrial sector helped provide lift to the TSX.
Shares in Canadian Pacific Railway rose 63 cents to $69.30 pending a possible shakeup in the upper echelons.
On the corporate front, Magna International Inc. shares gained $1.20 to $39.52 after it raised sales predictions by as much as 8% in 2012.
Newspaper and multimedia company Postmedia Network reported first-quarter net earnings grew to $28.3 million, from $6 million a year ago, helped by the sale of three daily newspapers.
However, revenues slipped nine per cent to $231.1 million, mostly on lower print advertising revenue and its shares fell 86 cents to $6.50.
Viterra Inc. says its benefits from the new rules eliminating the Canadian Wheat Board’s monopoly will be modest in 2012 but become more significant in following years. Its shares gained 32 cents to $11.04.
ON BAYSTREET
The TSX Venture Exchange shed 11.11 points to 1,531.12, while the Nasdaq Canada index gained 3.56 points to 392.18
All but two of the 14 Toronto subgroups were higher on the day, led by global base metals, up 1.2%, while real-estate ticked 1.1% higher and health-care gained 1%.
The two laggards were energy, down 1.5%, and utilities, inching back 0.01%.
ON WALLSTREET
In New York, stocks were under pressure Wednesday, a day after hitting their highest levels in nearly six months, as concerns about Europe's debt crisis were once again front and centre.
The Dow Jones Industrials were down 13.02 points to end the session at 12,449.50
The S&P 500 poked ahead 0.40 points, however, to 1,292.48, while the Nasdaq Composite reacquired 8.26 points to 2,710.76.
Financial stocks, among the biggest gainers Tuesday, were on the rise again Wednesday. Shares of Bank of America, Morgan Stanley, Citigroup and JPMorgan Chase were up between 0.3% and 2%.
Urban Outfitters shares plunged after the retailer announced late Tuesday that CEO Glen Senk is resigning. Richard Hayne, a co-founder of the company, will take his place.
Shares of Lennar rose even after the homebuilder announced earnings that fell short of estimates. Its revenue was better than expected.
Shares of Crocs spiked after the company said it expected its fourth-quarter revenue to come in at the high end of its forecast and full-year sales to top $1 billion U.S.
Shares of BP fell after the oil company announced a deal with Sempra Energy to invest more than $1 billion U.S. in wind farms in Pennsylvania and Kansas.
Investors have been encouraged by a recent string of upbeat reports on the U.S. economy. That trend could continue Thursday when government data is expected to show an increase in December retail sales.
Investors were rattled by a report showing the German economy contracted 0.25% in the last three months of the year. The data added to concerns that the euro-zone is in the midst of a mild recession.
The euro slid as much as 0.8% to a 16-month low around $1.26 U.S. The euro was under pressure ahead of a meeting of the European Central Bank on Thursday.
The E.C.B. is widely expected to hold interest rates steady at 1%, after cutting rates at its last two meetings. But some analysts expect ECB President Mario Draghi to signal a prolonged period of low interest rates.
On the economic front, The Federal Reserve said economic conditions across its 12 districts continued to expand moderately from November to December, according to the latest edition of the Beige Book.
The Fed said retailers reported strong holiday sales in December, but the residential real estate market was down in all districts.
Treasury prices for the 10-year note gained, pushing yields down to 1.90% from Tuesday’s 1.97%. Treasury prices and yields move in opposite directions.
Oil for February delivery erased $1.30 to $100.94 U.S. a barrel.
Gold futures for February delivery rose $9.00 to $1,640.50 U.S. an ounce.
