TORONTO ? The Toronto stock market was lower Friday morning with investors opting for safety ahead of weekend developments that could set the tone for trading next week.
The S&P/TSX composite index was well off the lows of the morning thanks in large part to rising gold stocks but still down 27.02 points to 11,565.1 while the TSX Venture Exchange fell 7.45 points to 1,288.63.
The Canadian dollar slipped, even though data released Friday showed job creation continued in May and at a slightly better level than expected. The loonie was also off the worst levels of the session but still down 0.28 of a cent to 97.01 cents US as Statistics Canada reported the economy cranked out about 7,700 jobs, which was ahead of the 5,000 that economists had estimated.
The dollar declined as traders avoided risky assets such as commodities and resource-based currencies such as the loonie.
U.S. markets shook off early losses to turn slightly higher with the Dow Jones industrial average ahead 10.37 points to 12,471.33.
The Nasdaq composite index was up 8.55 points to 2,839.57 and the S&P 500 index edged up 0.82 of a point to 1,315.81.
Going into the weekend, traders looked ahead to the latest trade and industrial data from China that might be even weaker than pessimistic forecasts expected.
China has rolled out a series of measures to stimulate the economy after growth fell to a nearly three-year low of 8.1% in the first quarter and April factory output grew at its slowest rate since the 2008 crisis.
Private sector analysts expect this quarter?s growth to fall further as the Chinese government worked to bring inflation down from unacceptable levels. On Thursday, the Chinese central bank announced it was cutting a key rate by 0.25 of a point to help boost growth.
Europe was also sharply in focus as the government debt crisis has now infected Spain and its banks, which are laden with billions of euros of toxic loans as a result of the collapsed housing sector.
Expectations are rising that Spain?s leaders will have to seek an international bailout for banks, which credit agency Fitch estimates could reach $100-billion. According to unconfirmed reports in Reuters, Spain is set to request an aid package for banks on Saturday.
However, Spain?s Deputy Prime Minister Soraya Saenz de Santamaria said Friday the government will not act until receiving evaluations from the IMF on Monday and then two independent auditors Spain has hired. The economy ministry said on its website the latter are expected by June 21 at the latest.
Fitch cut the Spanish sovereign debt rating to BBB late Thursday, which is two notches above ?junk.?
Expectations of weak Chinese data and a stronger U.S. dollar sent commodity prices sharply lower.
A stronger greenback usually helps depress commodity prices, which are denominated in dollars, as it makes oil and metals more expensive for holders of other currencies.
The TSX energy sector lost one per cent as the July crude contract on the New York Mercantile Exchange fell $1.52 to US$83.30 a barrel. Cenovus Energy (TSX:CVE) lost 36 cents to $32.61.
The base metals group dropped 1.3% as July copper contract declined eight cents to US$3.29 a pound. Teck Resources (TSX:TCK.B) dropped 38 cents to $32.17.
The gold sector was ahead 1.2% as the August bullion contract on the Nymex gained 90 cents to US$1,588.90 an ounce. Barrick Gold Corp. (TSX:ABX) moved up 68 cents to $40.47.
The TSX dropped 41 points Thursday, ending a two day rally, after U.S. Federal Reserve chairman Ben Bernanke disappointed investors, saying that there would no immediate action to jump start the world?s largest economy.
In an appearance before members of the U.S. Congress, Bernanke avoided giving any signals about what the Fed might do in response to a slowdown in hiring.
European bourses were lower as London?s FTSE 100 index lost 0.16% and Frankfurt?s DAX gave back 0.24% even as Germany?s central bank raised its 2012 economic growth forecast for the country to one per cent, citing global growth and a boost to domestic demand from a healthy labour market and favourable financing conditions.
The Bundesbank?s prediction Friday compared with its forecast last December of 0.6% growth in gross domestic product this year.
The Paris CAC 40 was down 0.56%.
Mainland Chinese shares lost ground, with the benchmark Shanghai Composite Index falling for a fifth straight trading day, shedding 0.5% to close at the lowest level in more than two months.
Elsewhere in Asia, Japan?s Nikkei 225 index fell 2.1% and South Korea?s Kospi dropped 0.7%.
The Canadian Press
? Copyright (c) National Post
nikki haley stan van gundy navy jet crash virginia beach crash kellie pickler stephen hawking marion barry
No comments:
Post a Comment