Tsx loses ground in volatile session
The Toronto stock market closed lower Monday, but well off earlier losses, in a volatile session weighed down by concerns about a global recession and the impact it would have on Canadian commodities.
The S& P/ TSX composite index was down 25.43 points at 11,335.77, coming off earlier triple- digit losses as some of the weakness backed off from resource stocks.
The TSX Venture Exchange fell 13.04 points to 1,278.55.
The Canadian dollar slipped US0.03¢ to US96.18¢, near a 5 ½ - month low. The loonie has lost more than US5¢ in a little over a month as nervous traders avoided risk and flock to the U. S. Treasury and amid reduced expectations for a Canadian interest rate hike.
On the TSX, the information technology sector was the steepest decliner, down 1.6%, as Research In Motion Ltd. shares lost another 65¢, or 6%, to $ 10.03.
Energy stocks were down 0.1% as the July crude contract on the New York Mercantile Exchange closed up US75¢ to US$ 83.98 a barrel.
Bullion prices for August ended lower with the contract falling US$ 8.20 to US$ 1,613.90 an ounce.
On Wall Street, the Dow Jones industrial average dropped 17.11 points to 12,101.46. The Nasdaq composite index was up 12.53 points to 2,760.01 and the S& P 500 index gained 0.14 points to 1,278.18.
A U. S. Commerce Department report offered more reason to be concerned about the economy as companies placed fewer orders to U. S. factories for the second straight month. Orders for factory goods were down 0.6% in April from March.
The North American stock market weakness followed a dismal session in Asia.
“For the better part of this year, concerns have been emanating out of Europe ( about) potential for the government debt crisis there to become a financial catastrophe around the world,” said Craig Fehr at Edward Jones.
In other commodities, the July copper contract on the Nymex rose two cents to US$ 3.33 a pound. Copper is widely viewed as a key economic barometer as it is used in so many industries and China has been the biggest purchaser of the metal.
Bullion prices for August were lower with the contract falling US$ 8.20 to US$ 1,613.90 an ounce.
On Tuesday, the Bank of Canada is widely expected to leave its key rate unchanged at 1%. But Bank of Canada governor Mark Carney could also end up discouraging any thought of a rise in interest rates this year because of slowing economic condition, as well as worries about the future of the eurozone and the health of banks in the region.