Canadian stocks were hovering in the green Wednesday morning amid buying in energy stocks even as hopes for a concrete plan to resolve the euro zone crisis during the upcoming European Union summit faded. Speculation about a move towards common euro-zone bonds subsided after German Chancellor Angela Merkel ruled out such move.
The S&P/TSX Composite Index added 31.25 points or 0.28 percent to 11,365.67.
MacDonald Dettwiler (MDA.TO) skyrocketed 24 percent after it said it would buy Space Systems/Loral from Loral Space & Communications Inc. (LORL) for about $1 billion.
Latest data from the EIA revealed that U.S. crude oil inventories edged down 100,000 barrels, while gasoline stocks were up 2.10 million barrels in the weekended June 22. Analysts were expecting crude oil inventories to dip by 1 million barrels, while gasoline stocks are seen adding 300,000 barrels last week. Crude for August delivery were up $0.88 to $80.24 a barrel
In the oil patch, conventional oil and gas company ARC Resources Ltd. (ARX.TO) rose over 4 percent and Husky Energy (HSE.TO) gained over 2 percent. Bonterra Energy (BNE.TO), Encana Corp. (ECA.TO) and Pacific Rubiales Energy (PRE.TO) gathered around 2 percent each.
Among base-metals stocks Teck Resources (TCK_B.TO) rose over 2 percent, while Inmet Mining (IMN.TO) was losing 1 percent.
Meanwhile, transportation company Canadian Pacific Railway (CP.TO) shed 1 percent after it said that Rick George has resigned from its Board of Directors.
The price of gold was moving lower Wednesday morning as hopes for a concrete plan to resolve the euro crisis in the upcoming European Union summit faded. Gold for August shed $3.90 to $1,571.00 an ounce.
Gold miner Goldcorp Inc. (G.TO) slipped nearly 1 percent after announcing that the Ontario Court has dismissed the claims of Barrick Gold Corp.(ABX.TO) seeking to declare unlawful and ineffective the transactions announced by Goldcorp and New Gold Inc. (NGD.TO) on January 7, 2010 with respect to the acquisition of the El Morro project in Chile. Shares of Barrick and New Gold were also down 1 percent each.
Silver streaming company Pan American Silver Corp. (PAA.TO) slipped 1 percent after announcing the completion of the sale of its Quiruvilca operation to Quiruvilca Ltd., a subsidiary of Southern Peaks Mining L.P.
Power generation and infrastructure company Atlantic Power Corp. (ATP.TO) lost over 4 percent after it said it has commenced an underwritten public offering of 5,500,000 common shares of the company.
In economic news from south of the border, the U.S. Commerce Department said new orders for manufactured durable goods increased by $2.3 billion in May, a 1.1 percent increase over revised April levels. The April levels of durable goods orders were, however, revised down to show a 0.2 percent decline rather than the relatively level rate previously reported.
Separately, the National Association of Realtors said its pending home sales index jumped 5.9 percent to 101.1 in May from 95.5 in April. Economists had expected pending home sales to show a much more modest 1.2 percent increase.
From the euro zone, import price inflation in Germany eased to 2.2 percent in May from 2.3 percent in April, the Federal Statistical Office said. The import price index, excluding crude oil and mineral oil products, was 1.4 percent above the level of a year earlier.
by RTT Staff Writer
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