Canadian stocks were little changed Tuesday morning as euphoria over the Federal Reserve's stimulus package waned and trader shift their focus on fundamentals. Meanwhile, worries over euro zone debt situation resurfaced amid uncertainty about Spain's desire for an international aid package. Analysts opine that the delaying tactics by Spain to opt for financial aid could put upward pressure on yields.
The S&P/TSX Composite Index eased 6.85 points to 12,440.01, a day after snapping its four-session winning streak.
The Diversified Materials Index was the major loser, shedding nearly 1 percent. Teck Resources (TCK_B.TO) lost 3 percent, while Inmet Mining (IMN.TO) and First Quantum Minerals (FM.TO) were slipping around 1 percent each.
Coal miner SouthGobi Resources (SGQ.TO) announced Ross Tromans as its chief executive officer and president with immediate effect. The stock dived 12 percent.
The price of crude oil was extending losses Tuesday morning on demand concerns amid reports that Saudi Arabia is pumping at high rates to dampen prices. Yesterday, oil dropped dramatically in the last few minutes of regular trade to end sharply lower amid rumors of oil release from the Strategic Petroleum Reserve after prices galloped following the Federal Reserve announcement of additional quantitative easing measures last week. Crude for October was down $0.14 to $96.48 a barrel.
In the oil patch, Crescent Point Energy (CPG.TO), Cenovus Energy (CVE.TO), Vermilion Energy (VET.TO) and Baytex Energy Corp. (BTE.TO) were down around 1 percent each.
Meanwhile, gold stocks were paring early trading losses as the price of bullion steadied. Gold for December added $2.60 to $1,773.20 an ounce.
Seabridge Gold (SEA.TO) rose over2 percent, while Royal Gold (RGL.TO) and Allied Nevada Gold (ANV.TO) were adding over 1 percent each.
Transportation equipment maker Bombardier Transportation (BBD_A.TO, BBD_B.TO) said it signed $367 million contracts with Talgo SA to develop and supply components for 36 very high speed trains for Saudi Arabia. Th stock was trading flat at C$3.840
Electronic equipment maker Dynetek Industries Ltd.(DNK.TO) gained over 2 percent after announcing that it has been fully acquired by Luxfer Holdings Plc through its wholly-owned subsidiary Luxfer Canada Limited.
In economic news from the U.S., a report from the National Association of Home Builders showed that the NAHB/Wells Fargo Housing Market Index rose to 40 in September from 37 in August. Economists had been expecting the index to show a more modest increase to a reading of 38. With the much bigger than expected increase, the index rose to its highest level since coming in at 42 in June of 2006.
From the euro zone, Germany's economic sentiment improved in September after easing for four straight months, the Mannheim-based ZEW said. The ZEW Indicator of Economic Sentiment rose 7.3 points to -18.2. However, the negative reading indicates that the financial market experts expect the German economy to lose momentum over the next six months.
Meanwhile, a survey report from the Office for National Statistics revealed that house price inflation in the U.K. eased more than expected in July. The ONS house price index rose 2 percent year-on-year in July, slower than 2.3 percent gain in June. This was also weaker than the 2.1 percent rise forecast by economists.
by RTT Staff Writer
For comments and feedback: email@example.com