Canadian stocks were extending losses for a fourth session Thursday morning as hopes for further quantitative easing from the US diminished amid a recent batch of upbeat economic reports and as commodities struggling to sustain recent gains.
The S&P/TSX Composite Index lost 75.24 points or 0.63 percent to 11,934.55, after shedding just over 70 points or 0.60 percent in the past three sessions.
The Diversified Materials Index was the major loser, dipping nearly 2 percent. Teck Resources (TCK_B.TO) was down over 3 percent, while First Quantum Minerals (FM.TO) and Inmet Mining (IMN.TO) were losing around 1 percent each.
The price of crude oil moved down Thursday morning as the U.S. dollar was trading mixed ahead of a key central bankers' meeting at the weekend. Crude for October lost $1.35 to $94.14 a barrel.
In the oil patch, Lundin Petroleum (LUP.TO) and Niko Resources (NKO.TO) lost around 4 percent each. Paramount Resources (POU.TO) was down about 3 percent.
Financial stocks were mixed. Royal Bank (RY.TO) rose over 1 percent after reporting third-quarter net income of C$2.240 billion, up 73 percent from C$1.294 billion the prior year. Excluding certain items, net income from continuing operations was C$1.978 billion or C$1.29 per share. Analysts expected the bank to report earnings of C$1.19 per share for the quarter.
CIBC (CM.TO) shed 1 percent despite reporting improved third-quarter net income of C$841 million or C$2.00 per share, compared to C$591 million or C$1.33 per share a year earlier. Adjusted net income was C$835 million, or C$2.06 per share, higher than C$767 million or C$1.93 per share a year ago. Analysts were expecting the bank to report earnings of C$1.96 per share for the quarter.
Separately, CIBC said it would acquire Griffis & Small LLC, a Houston-based energy advisory firm specializing in acquisitions and divestitures in the exploration and production sector. Additionally, CIBC plans to seek Toronto Stock Exchange approval to commence a normal course issuer bid to buy back for cancellation up to 8.1 million shares, representing nearly 2 percent of CIBC's 405.75 million issued and outstanding shares.
TD Bank Group (TD.TO) was down nearly 1 percent even after posting third-quarter adjusted net income of C$1.82 billion or C$1.91 per share compared to C$1.64 billion or C$ 1.75 in the comparable quarter last year. Analysts were expecting the bank to report earnings per share of C$1.84 for the quarter.
Scotiabank (BNS.TO) dived over 2 percent after it said it would buy ING Bank of Canada, or ING DIRECT, from Netherlands-based parent ING Group for C$3.126 billion in cash.
Ladies' apparel specialty chain Reitmans Canada Ltd. (RET.TO) slipped 0.40 percent after reporting a lower second quarter profit of C$27.7 million or C$0.42 per share compared to C$31.7 million or C$0.48 per share in the same period last year.
The price of gold was extending losses for a third session Thursday morning as hopes for further quantitative stimulus measures from the world's largest economy weakened following the recent batch of encouraging economic data from the U.S. Gold for December edged down $6.90 to 1,656.10 an ounce.
Royal Gold (RGL.TO) moved up nearly 1 percent. Goldcorp. (G.TO) and Barrick Gold (ABX.TO) added around 050 percent each, while Kinross Gold (K.TO) and Agnico-Eagle Mines (AEM.TO) shed about 0.50 percent each.
In economic news, Statistics Canada said current account deficit, on a seasonally adjusted basis, expanded $5.9 billion to $16.0 billion in the second quarter, mainly on lower exports and higher imports of goods.
From the U.S., the Labor Department said that initial jobless claims came in at 374,000, unchanged in the week ended August 25, compared to the previous week's revised figure. Economists had expected jobless claims to edge down to 370,000 from the 372,000 originally reported for the previous week.
Elsewhere, euro zone economic sentiment weakened further in August due to strong loss in confidence among consumers, retailers and construction managers. The economic sentiment index dropped to 86.1 from 87.9 in July, European Commission said. The reading was below consensus forecast of 87.5.,
Meanwhile, Germany's unemployment increased by 9,000 in August from July, the Federal Labor Agency reported. The number of unemployed was forecast to rise by 7,000 after increasing 9,000 in July. At the same time, the jobless rate remained unchanged at 6.8 percent. The rate also matched economists' expectations. According to labor force survey, the adjusted jobless rate held steady at 5.5 percent in July.
by RTT Staff Writer
For comments and feedback: email@example.com