Paring their three-session gains, Canadian stocks were lingering in the red Wednesday morning pressured by sell-offs in commodities, even as traders eye the outcome of 2-day FOMC meet. Meanwhile, pressure on Spanish and Italian government bonds eased amid hopes that leaders were making progress to resolve the debt crisis, with Greece conservative party forming a new coalition.
The S&P/TSX Composite Index surrendered 56.26 points or 0.48 percent to 11,732.10, after adding just over 300 points or nearly 3 percent in the past three sessions.
The Diversified Materials Index shed close to 2 percent, with Inmet Mining (IMN.TO) losing nearly 4 percent. First Quantum Minerals (FM.TO) and Teck Resources (TCK_B.TO) slipped around 2 percent each.
Latest report from the EIA revealed that U.S. crude oil inventories moved up 2.90 million barrels and gasoline stocks added 0.90 million barrels in the weekended June 15. Analysts were expecting crude oil inventories to decline by 600,000 barrels last week. Crude for August, the most actively traded contract, lost $1.76 to $82.59 a barrel.
In the oil patch, Tourmaline Oil (TOU.TO) lost over 4 percent, while Encana Corp. (ECA.TO) was shedding over 2 percent.
Oil and gas industry drilling services provider Pason Systems Inc. (PSI.TO) eased 0.40 percent after announcing that it would pay $19.4 million in total damages in US Auto-Driller Lawsuit
Gold stocks were trading lower amid a fall in bullion prices. The price of gold was extending losses for a third session Wednesday morning as the U.S. dollar was steady versus a basket of currencies ahead of the outcome of 2-day FOMC meeting. Gold for August shed $21.90 to $1,601.30 an ounce.
Among gold plays, Allied Nevada Gold (ANV.TO), Yamana Gold (YRI.TO), Agnico-Eagle Mines (AEM.TO) and Goldcorp. (G.TO) were down nearly 3 percent each.
Smartphone maker Research In Motion (RIM.TO) lost 5 percent amid reports that the company is planning job cuts to trim operating expenses by $1 billion.
Meanwhile, communication equipment maker Aastra Technologies (AAH.TO) surged 7 percent.
Energy infrastructure business AltaGas Ltd. (ALA.TO) edged up 0.75 percent after it said that it has entered into an agreement with Quatro Resources Inc. to acquire Quatro's Midstream Assets for about $20 million.
In economic news from the euro zone, Germany's producer price inflation slowed more than expected to 2.1 percent in May, Destatis said. Economists were expecting the rate to ease to 2.2 percent from 2.4 percent in April.
Meanwhile, policymakers of the Bank of England decided to retain the size of quantitative easing unchanged in a split vote, the minutes of the meeting showed. Four members of the Monetary Policy Committee sought more stimulus, while five members voted to maintain the QE intact at GBP 325 billion.
by RTT Staff Writer
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