Canadian stocks settled at a seven-month low Wednesday, paring much of the early gains, on renewed concerns over the Greek crisis with news reports the European Central Bank would cut off funding to Greek banks. The political uncertainties in Greece came about after major parties failed to reach an agreement on a coalition government following recent elections. The troubled nation now goes to polls once again, reportedly on June 17.
Earlier, Toronto stocks were in the green after some upbeat U.S. economic data and comments by German Chancellor Angela Merkel raising hopes of Greece remaining in the eurozone.
Toronto's main index, the S&P/TSX, closed Wednesday at 11,326.08, down 16.97 points or 0.15 percent. The S&P/TSX Composite Index touched an intraday high of 11,474.05 and a low of 11,298.46.
The TSX Venture Index closed at 1,217.77, down 22.30 points or 1.80 percent. The index opened at 1,239.95 compared to its previous close of 1,240.07.
The major gainers of the S&P/TSX Index were the Metals & Mining, Materials, and the Global Gold indices. In the negative territory were the Energy and Financial indices.
The Metals & Mining Index gained 1.41 percent with Osisko Mining Corporation (OSK.TO) gaining 4.06 percent, while Teck Resources Limited (TCK.B.TO) shed 1.51 percent. Lundin Mining Corp. (LUN.TO) gained 1.87 percent, while First Quantum Minerals Ltd. (FM.TO) surged 5.34 percent.
An Energy Information Administration report revealed US crude oil inventories to have jumped 2.10 million barrels, while gasoline stocks eased 2.80 million barrels in the week ended May 11. Analysts expected crude oil inventories to jump 1.7 million barrels, with gasoline projected to drop 500,000 barrels last week.
U.S. crude oil futures dropped to settle at a six-month low Wednesday, with futures for June dropping $1.17 or 1.2 percent to close at $92.81a barrel on the NYMEX.
The Energy Index fell 0.69 percent with Suncor Energy (SU.TO) dropping 0.80 percent and Canadian Natural Resources Limited (CNQ.TO) edging down 0.37 percent. Bankers Petroleum Ltd. (BNK.TO) gained 11.32 percent, while Encana Corp (ECA.TO) inched up 0.20 percent. Talisman Energy Inc. (TLM) shed 0.10 percent.
Global oil and gas industry equipment services provider Hyduke Energy Services (HYD.TO) added over 3 percent after reporting a sharp increase in its first quarter profit.
Oil and gas exploration and production company Tethys Petroleum (TPL.TO) dropped 2.78 percent after reporting a wider first quarter loss.
The Materials Index gained 0.58 percent with Potash Corporation of Saskatchewan Inc. (POT.TO) marginally down 0.08 and Mercator Minerals Ltd. (ML.TO) down 5.97 percent.
Gold stocks were trading higher despite weak bullion prices. The price of gold dived to a 10-month low Wednesday amid lingering worries over the political developments in the Greece. Gold futures for June delivery shed $20.50 or 1.3 percent to close at $1,536.60 an ounce Wednesday on the NYMEX.
The Global Gold Index moved up 0.91 percent, led by shares of B2Gold Corp. (BTO.TO) up 2.91 percent, Eldorado Gold Corp. (ELD.TO) up 0.29 percent, and Kinross Gold Corp. (K.TO) moving up 0.82 percent. Barrick Gold Corp. (ABX.TO) gained 1.36 percent and Goldcorp Inc. (G.TO) was up 1.34 percent.
The Financial Index slipped 0.36 percent with Manulife Financial Corp. (MFC.TO) down 3.35 percent and Sun Life Financial Inc. (SLF.TO) down 1.79 percent. Royal Bank of Canada (RY.TO) gained 0.23 percent, while Toronto-Dominion Bank (TD.TO) slipped 0.25 percent. Bank of Nova Scotia (BNS.TO) edged down 0.27 percent.
Heavyweights transportation systems maker Bombardier Inc. (BBD.B.TO) was down 2.34 percent, while smartphone maker Research In Motion Limited (RIM) edged down 0.09 percent.
In economic news, Statistics Canada said manufacturing sales grew 1.9 percent to C$49.70 billion in March to register its largest gain since September 2011. Sales of petroleum and coal products increased 4.5 percent to $7.5 billion, the highest since July 2008. The increase was largely the result of higher sales volumes at many oil refineries.
From the U.S., a report from the Commerce Department showed housing starts rose 2.6 percent to an annual rate of 717,000 in April from the revised March estimate of 699,000. Economists expected housing starts to increase to 690,000 from the 654,000 originally reported for March. Building permits fell 7.0 percent to an annual rate of 715,000 in April from the revised March rate of 769,000. Building permits, which are seen as an indicator of future housing demand, was expected to drop to 725,000 from the 747,000 originally reported for March.
The eurozone annual inflation for April was confirmed at 2.6 percent, down from 2.7 percent in March, final data from Eurostat showed. Nonetheless, inflation continues to stay above the European Central Bank's target, but close to 2 percent. Monthly inflation was 0.5 percent in April.
Elsewhere, the Bank of England said prospects for U.K. growth remain unusually uncertain. U.K. economic growth is set to remain subdued, while inflation is projected to be somewhat higher than expected three months ago, Bank of England said in its quarterly Inflation Report published today.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.