Drop in oil prices brings Tsx Down Too
The Toronto stock market ended lower on Wednesday as a decline in oil prices pulled down energy stocks.
The S&P/TSX composite index slid 31.76 points to 12359.47, while the TSX Venture Exchange was off 6.56 of a point to 1,325.22.
The Canadian dollar fell US40¢ to US 101.20¢.
Most of the losses came from the energy sector, which was down 1.2%, with November crude on the New York Mercantile Exchange ending the session $3.75 lower at US$88.14 a barrel.
Crude prices have fallen to their lowest level in a month, weighed by concerns about the economic slowdown in Europe, China and the United States.
The gold sector was also weaker while December bullion rose $4.20 to US$1,779.80 an ounce, while December copper was down 1.7¢ at US$3.78 a pound.
However, there was some encouraging economic data from the U.S. that helped take some of the pressure off the decline. A report from payroll processor ADP said U.S. companies added 162,000 jobs last month, slightly better than consensus expectations, but down from August. The data indicated that growth isn’t picking up momentum.
The Institute for Supply Management said its index of service companies, which includes everything from financial firms to clothing stores, rose in September to the highest level since March. The index reached 55.1. Economists had estimated it would drop to 53.4.
On Wall Street, the Dow Jones industrials were up 12.25 points to 13,494.61.
The Nasdaq composite index advanced 15.19 points to 3,135.23, while the S&P 500 index gained 5.24 points to 1,450.99.
North American stock markets have been moving cautiously this week ahead of the latest U.S. jobs data, due on Friday. Concerns about Spain’s debt problems have extended traders’ concerns that more European troubles could be on the horizon.
“You’ve got a market that’s transfixed,” said John Stephenson, senior vice-president and portfolio manager at First Asset Funds Inc.
“People are scared of missing out on the rally ... but by the same token they think that Europe isn’t solved, so they’ve got a little bit of a bias to being light in the market. It’s really a market where there’s no catalyst.”
In Canadian news, a report from Royal LePage showed that the average price of a resale home in Canada rose between 1.8 and 4.8% in the third quarter of 2012 compared to the same period last year. The cost of an average two-storey home in Canada increased 4% to $403,747, while detached bungalows rose 4.8% to $366,773.