Canadian stocks were extending losses for a fifth session Wednesday morning on renewed worries over Europe's debt situation. Also, traders were concerned about economic growth in the world's largest economy after the Philadelphia Fed President Plosser observed that the current round of quantitative easing would do little to help the economy and the Fed may have to hike short-term interest rates before mid-2015.
Meanwhile, a report in German newspaper Bild said the Bundesbank was preparing a lawsuit against the European Central Bank, claiming that the central bank is overstepping its mandate in launching the latest round of bond buying program, known as the Outright Monetary Transactions.
The S&P/TSX Composite Index lost 79.43 points or 0.65 percent to 12,177.75, after shedding nearly 200 points or over 1 percent in the past four trading sessions.
The price of gold was moving lower Wednesday morning as the U.S. dollar was extending gains versus a basket of currencies. Gold for December lost $24.40 to $1,742.00 an ounce.
Among gold plays, Royal Gold (RGL.TO) and Barrick Gold (ABX.TO) were down around 2 percent each.
Latest data from the EIA revealed that U.S. crude oil inventories unexpectedly dipped by 2.40 million barrels and gasoline stocks eased 0.50 million barrels in the weekended September 21. Analysts expected crude oil inventories to jump by 1.5 million barrels and gasoline stocks are seen unchanged. Crude for November shed $2.21 to $89.16 a barrel.
In the oil patch, Vermilion Energy (VET.TO), Pacific Rubiales Energy (PRE.TO) and Baytex Energy Corp. (BTE.TO) lost around 2 percent each.
Niko Resources (NKO.TO) lost close to 6 percent.
In the financial space, CIBC (CM.TO) and IGM Finance (IGM.TO) were down over 1 percent each.
AGF Management Limited (AGF_B.TO) dived over 7 percent after reporting a third quarter net loss of C$13.3 million or C$0.14 per share compared to a profit of C$15.4 million or C$0.16 per share a year ago.
Meanwhile, smartphone maker Research In Motion (RIM.TO) was extending gains for a second session, adding nearly 2 percent. Yesterday, the stock jumped over 5 percent after indicating its subscriber base to have risen past the 80 million mark, from 78 million reported in its first quarter. The company also had previews of its new BlackBerry 10 mobile operating system, slated for release early next year.
In economic news from south of the border, the U.S. Commerce Department said new home sales edged down 0.3 percent to a seasonally adjusted annual rate of 373,000 in August from the revised July rate of 374,000. Economists had expected new home sales to climb to an annual rate of 380,000 from the 372,000 rate originally reported for the previous month.
Elsewhere, euro zone leading index recorded its first increase in six months, rising 0.6 percent month-on-month in August to 105.3, the Conference Board said.
Meanwhile, Germany's EU harmonized inflation slowed in September as expected by economists, preliminary data from the Federal Statistical Office showed. The EU measure of inflation, as per the harmonized index of consumer prices (HICP), decelerated to 2.1 percent in September from 2.2 percent in August. The latest figure matched economists' expectations.
by RTT Staff Writer
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