Mining, Metals results edge tsx up
The Toronto stock market moved higher on Wednesday driven by strength in the mining and metals sector, while Wall Street lost ground after plans to avert the “fiscal cliff ” hit a snag in Washington.
The S&P/TSX composite index rose 69.29 points to 12,403.63, as key commodities prices were mixed. The TSX Venture Exchange gained 0.52 of a point to 1,176.52.
The Canadian dollar was down US0.25¢ to US101.20¢.
The TSX metals and mining sector gained 2.8%, with Sherritt International rising 6.5% to $5.75 and Teck Resources lifting 49¢ to $35.99.
Energy stocks rose 0.4% as the February crude contract on the New York Mercantile Exchange rose $1.58 to US$89.98 a barrel. The January contract expired at the end of the session.
March copper declined 4.8¢ to US$3.61 a pound while February gold bullion moved back $3 to US$1,666.50 an ounce.
Traders south of the border showed they’re losing patience with budget negotiations between President Barack Obama and Republican leaders that appear to be making little headway.
The White House threatened to veto House Speaker John Boehner’s backup plan to avoid automatic tax increases and government spending cuts that are set to take effect Jan. 1 if no deal is reached on cutting the government’s budget deficit.
Boehner had proposed a “Plan B,” separate from negotiations with the White House, that would extend decade-old tax cuts for everyone making less than $1 million a year.
The Dow Jones industrials lost 98.99 points to 13,251.97, giving back most of the gains made in the previous session. The Nasdaq fell 10.17 points to 3,044.36 while the S&P 500 index was off 10.98 points at 1,435.81.
Concerns are that if a budget plan isn’t reached by the year-end deadline then markets will begin a steep sell-off to contend with the possibility the U.S. could dip into another recession that could spread to other economies of the world.
“Each of the two sides realize the deadline is pending and if they don’t get it done, I can see getting into a little bit of political football where they point at each other and blame the other guy,” said Greg Eckel, portfolio manager at Morgan, Meighen and Associates.
Canadian bank CIBC is forecasting “very mediocre” domestic growth next year, blaming weakness in the world economy and an absence of key economic drivers at home. CIBC says it now expects economic growth of only 1.7% in 2013, down from its previous estimate of 2%.