Canadian stocks settled lower Tuesday, as focus on the stimulus announced by the U.S. Federal Reserve dimmed and renewed concerns over eurozone's uncertainty over an international aid package for Spain. The decline was led mostly by energy and mining stocks, after oil prices continued to decline after its dramatic fall yesterday, minutes before close of trading.
The S&P/TSX Composite Index closed Tuesday at 12,422.71, down 24.15 points or 0.19 percent. The index touched an intraday high of 12,450.04 and a low of 12,391.40.
The Metals & Mining Index fell 1.19 percent, with Teck Resources Limited (TCK.B.TO) shedding 1.64 percent and First Quantum Minerals Ltd. (FM.TO) dropped 1.91 percent. Inmet Mining Corp. (IMN.TO) fell 2.03 percent.
The Energy Index dropped 0.87 percent, with U.S. crude oil futures for October delivery slipped $1.33 or 1.4 percent to close at $95.29 a barrel Tuesday on the NYMEX.
Among energy stocks, Suncor Energy Inc. (SU.TO) slipped 1.44 percent, Talisman Energy Inc. (TLM.TO) was down 0.70 percent, Canadian Natural Resources Limited (CNQ.TO) dropped 1.15 percent, and Encana Corp. (ECA.TO) edged down 1.65 percent. Penn West Petroleum Ltd. (PWT.TO) surrendered 4.45 percent.
The Global Gold Index gained 0.62 percent, with gold futures for December delivery inching up $0.60 or 0.03 percent to close at $1,771.20 an ounce Tuesday on the NYMEX.
The Capped Materials Index edged up 0.08 percent, with fertilizer maker Potash Corporation of Saskatchewan Inc. (POT.TO) slipping 0.53 percent.
Among gold stocks, Barrick Gold Corp. (ABX.TO) shed 0.24 percent, Goldcorp Inc. (G.TO) edged up 0.71 percent, Yamana Gold Inc. (YRI.TO) moved up 0.98 percent, Eldorado Gold Corp. (ELD.TO) shed 2.00 percent, and Kinross Gold (K.TO) gained 0.30 percent.
The Financial Index slipped 0.28 percent, with Manulife Financial Corp. (MFC.TO) down 1.63 percent. Royal Bank of Canada (RY.TO) gained 0.62 percent, Bank of Nova Scotia (BNS.TO) shed 0.34 percent, and Toronto-Dominion Bank (TD.TO) surrendered 0.13 percent.
Transportation systems maker Bombardier Inc. (BBD.A.TO, BBD.B.TO) shed 1.60 percent. The company indicated signing $367 million contracts with Talgo SA to develop and supply components for 36 very high speed trains for Saudi Arabia.
The Information Technology Index gained 1.21 percent, with smartphone maker Research In Motion Limited (RIM.TO) gaining 2.40 percent after news that it had signed a deal with Microsoft Inc. (MSFT) to license patents. The deal involves Microsoft's latest Extended File Allocation Table (exFAT) technology which enables transfer of large media files between desktop PCs and wireless devices.
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
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