Canadian stocks were hovering around the unchanged line Thursday morning as traders were concerned over the market implications of a possible tapering of U.S. quantitative easing, ahead of the Federal Reserve's next policy meeting due on on June 18-19. Also, worries over economic growth resurfaced after the World Bank lowered its growth forecasts for the global economy, citing deeper-than-expected recession in the euro area and muted growth in developing countries.
Releasing the June edition of the Global Economic Prospects, the lender said it now expects the world economy to grow 2.2 percent this year, decelerating from the 2.3 percent expansion in 2012. The projection was weaker than the January forecast for a 2.4 percent expansion. The growth is expected to strengthen to 3 percent in 2014 while the January report predicted growth of 3.1 percent. The outlook for 2015 was kept unchanged at 3.3 percent growth.
The S&P/TSX Composite Index edged up 23.93 points or 0.20 percent to 12,133.82, after dipping nearly 300 points or over 2 percent in the past two trading sessions.
The price of gold was struggling to move past the $1,400-mark Thursday morning, with the US dollar trading mixed amid the release of macroeconomic data. Gold for August lost $9.90 to $1,382.10 an ounce.
Among gold plays, Agnico-Eagle Mines (AEM.TO) and Barrick Gold (ABX.TO) were down around 2 percent each. Goldcorp. (G.TO) and Kinross Gold (K.TO) were down about 1 percent each
Real estate investment company Timbercreek Mortgage Investment Corp. (TMC.TO) said it will satisfy its reinvestment of dividends for participants in the Dividend Reinvestment Plan by acquiring shares in the open market rather than by issuing from treasury. The stock eased about 1 percent.
The price of crude oil was ticking lower Thursday morning amid demand growth worries after the World Bank lowered its growth forecasts for the global economy, citing deeper-than-expected recession in the euro area and muted growth in developing countries. Crude for July delivery shed $0.23 to $95.65 a barrel.
In the oil patch, Suncor Energy (SU.TO) was down about 1 percent, while Pacific Rubiales Energy (PRE.TO) shed 2 percent.
On the other hand, Niko Resources (NKO.TO) surged over 9 percent after increasing its proved reserves by 160 percent.
Travel operator Transat A.T. Inc. (TRZ_A.TO, TRZ_B.TO) jumped 14 percent after reporting a wider second quarter loss of C$22.76 million or C$0.59 per share compared with loss of C$13.20 million or C$0.35 per share in the year-ago period. However, adjusted loss was narrower than analysts' estimates, while revenues missed their expectations. Looking ahead, the company said it expects to return to profitability in fiscal 2013.
Base metals mining company Lundin Mining Corp. (LUN.TO) rose nearly 6 percent after it said it will buy the Eagle nickel and copper mine in the U.S. from Anglo-Australian mining giant Rio Tinto plc for about $325 million. The transaction is expected to be completed in July 2013.
In economic news Statistics Canada said the New Housing Price Index rose 0.2 percent in April, following a 0.1 percent increase in March. On a year-over-year basis, the NHPI rose 2.0 percent in the 12 months to April, following a similar increase the previous month.
From south of the border, the U.S. Labor Department said initial jobless claims fell to 334,000, a decrease of 12,000 from the previous week's unrevised figure of 346,000. The modest decrease came as a surprise to economists, who had been expecting initial jobless claims to edge up to 350,000.
Simultaneously, the Commerce Department said retail sales increased by 0.6 percent in May after edging up by 0.1 percent in April. The sales growth came in just above economist estimates for a 0.5 percent increase. Excluding a 1.8 percent jump in sales by motor vehicle and parts dealers, retail sales increased by a more modest 0.3 percent in May compared to expectations for 0.4 percent growth.
From the euro zone, Germany's wholesale prices declined for the second consecutive month in May on lower cost of gaseous fuels, Destatis reported. Wholesale prices dropped unexpectedly by 0.1 percent from a year ago, after easing 0.4 percent in April. Economists had forecast a 0.2 percent rise for May.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.