By Frank Pingue
TORONTO, Oct 9 (Reuters) - Toronto's main stock index was little changed on Friday morning, after a string of hefty gains, as a retreat by gold miners was cushioned by an upbeat reading on Canadian jobs, which buoyed banking issues.
Heavyweight miners such as Barrick Gold Corp dropped 0.7 percent to C$41.32, while Goldcorp slid 0.7 percent to C$44.29 as the price of gold backed away from record highs hit earlier this week.
The drop in the index was largely offset by the influential financials group, which rose after jobs data suggested the Canadian economy is moving out of recession.
Royal Bank of Canada rallied 0.45 percent to C$56.33, while Toronto-Dominion Bank followed with a rise of 0.4 percent to C$66.06.
But after four straight triple-digit gains for the TSX, investors appeared content to stick close to the sidelines ahead of a holiday weekend in Canada. The TSX will be closed on Monday for Thanksgiving.
At 10:20 a.m. (1420 GMT) the S&P/TSX composite index was down 7.77 points, or 0.07 percent, at 11,476.74. It had fallen as much as 72 points earlier in the session.
'In the face of a long weekend people are covering their shorts or going long, whatever they want to, for comfort,' said Irwin Michael, portfolio manager at ABC Funds. 'It's just very quiet.'
($1=$1.05 Canadian)
($1=$1.045 Canadian)
((frank.pingue@thomsonreuters.com ; +1 416 941-8094; Reuters Messaging: frank.pingue.reuters.com@reuters.net))
============================================================== FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS: TSX market report........................................ Canadian dollar and bonds report...................
Top News: Canada .................................... Today in Canada..................................... Canadian company news ................................ Reuters global stocks poll (Canada)...
FOR CANADIAN MARKETS DATA, CLICK ON CODES IN BRACKETS: Canadian Equities speed guide...................... S&P/TSX Composite index ............................. S&P/TSE Venture composite index ..................... TSX most active....................................... Venture Exchange most active........................... Top TSX pct gainers................................... Top TSX pct losers.................................... S&P/TSX 60 index ..................................... 52 week highs:
TSX............... Venture.............. 52 week lows:
TSX............... Venture.............. Canadian dollar quote.....................
FOR MAIN GLOBAL MARKET DATA AND MARKET REPORTS:
FTSE EUROTOP 300 ..... EUROPEAN REPORT .......
Nikkei 225............. Tokyo report............
FTSE 100............... London report...........
Xetra DAX............. Frankfurt market stories
CAC-40................. Paris market stories...
World Indices.....................................
Foreign exchange......................................
Oil....................................................
US Treasuries..........................................
International bonds...................................
Gold....................................... or
CRB index of commodity futures........................ Keywords: MARKETS CANADA STOCKS
* TSX drops 0.41 pct to 11,436.92, ends week up 4.4 pct
* Gold miners slide on lower bullion price
* Big gain in Canadian jobs spurs C$ rise, rate hike talk
* Muted action ahead of holiday weekend
(Adds details, comments)
By Ka Yan Ng
TORONTO, Oct 9 (Reuters) - Currency swings played a big role on Friday in knocking Toronto's main stock index to its first lower close this week.
The Canadian dollar, pushed higher by a stronger-than-expected jobs report, created discomfort for exporters, while a surge by the U.S. dollar put resource issues under pressure.
Heavyweight miners such as Barrick Gold Corp dropped 0.96 percent to C$41.25, while Goldcorp slid 0.78 percent to C$44.25 as the price of gold backed away from record highs hit earlier this week.
Potash Corp led all notable decliners, shedding 3.6 percent to C$94.44, after Dahlman Rose & Co initiated coverage of the fertilizer company with a 'sell' rating. It gave rival Agrium a 'buy' rating, but the stock moved with most of the materials group lower, falling 2.8 percent at C$53.93.
'A lot of today's action is driven by currencies,' said Elvis Picardo, analyst and strategist at Global Securities in Vancouver. 'There is increasingly speculation that we may see rate hikes sooner rather than later in Canada.'
The S&P/TSX composite index closed down 47.59 points, or 0.41 percent, at 11,436.92, ending the week up 4.4 percent.
U.S. Federal Reserve chairman Ben Bernanke said at a conference on Thursday he was thinking of an exit strategy from quantitative easing and low interest rates as the U.S. economy improves.
That sparked a broad rally in the U.S. dollar against major many currencies, but not against the Canadian dollar, which shot to a one-year high because of the employment report. The Canadian currency and recent data was seen testing the Bank of Canada's resolve to hold rates unchanged through mid-2010.
After four straight triple-digit gains for the TSX, the market may have been ripe for a retreat, particularly ahead of a holiday weekend in Canada.
The TSX will be closed on Monday for Thanksgiving.
(Reporting by Ka Yan Ng) ============================================================== FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS: TSX market report........................................ Canadian dollar and bonds report................... Top News: Canada .................................... Today in Canada..................................... Canadian company news ................................ Reuters global stocks poll (Canada)... FOR CANADIAN MARKETS DATA, CLICK ON CODES IN BRACKETS: Canadian Equities speed guide...................... S&P/TSX Composite index ............................. S&P/TSE Venture composite index ..................... TSX most active....................................... Venture Exchange most active........................... Top TSX pct gainers................................... Top TSX pct losers.................................... S&P/TSX 60 index ..................................... 52 week highs: TSX............... Venture.............. 52 week lows: TSX............... Venture.............. Canadian dollar quote..................... FOR MAIN GLOBAL MARKET DATA AND MARKET REPORTS: FTSE EUROTOP 300 ..... EUROPEAN REPORT ....... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt market stories CAC-40................. Paris market stories... World Indices..................................... Foreign exchange...................................... Oil.................................................... US Treasuries.......................................... International bonds................................... Gold....................................... or CRB index of commodity futures........................ Keywords: MARKETS CANADA STOCKS (kayan.ng@thomsonreuters.com; Reuters Messaging: kayan.ng.reuters.com@reuters.net; 416-941-8109) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
TORONTO, Oct 9 (Reuters) - Toronto's main stock index was little changed on Friday morning, after a string of hefty gains, as a retreat by gold miners was cushioned by an upbeat reading on Canadian jobs, which buoyed banking issues.
Heavyweight miners such as Barrick Gold Corp dropped 0.7 percent to C$41.32, while Goldcorp slid 0.7 percent to C$44.29 as the price of gold backed away from record highs hit earlier this week.
The drop in the index was largely offset by the influential financials group, which rose after jobs data suggested the Canadian economy is moving out of recession.
Royal Bank of Canada rallied 0.45 percent to C$56.33, while Toronto-Dominion Bank followed with a rise of 0.4 percent to C$66.06.
But after four straight triple-digit gains for the TSX, investors appeared content to stick close to the sidelines ahead of a holiday weekend in Canada. The TSX will be closed on Monday for Thanksgiving.
At 10:20 a.m. (1420 GMT) the S&P/TSX composite index was down 7.77 points, or 0.07 percent, at 11,476.74. It had fallen as much as 72 points earlier in the session.
'In the face of a long weekend people are covering their shorts or going long, whatever they want to, for comfort,' said Irwin Michael, portfolio manager at ABC Funds. 'It's just very quiet.'
($1=$1.05 Canadian)
($1=$1.045 Canadian)
((frank.pingue@thomsonreuters.com ; +1 416 941-8094; Reuters Messaging: frank.pingue.reuters.com@reuters.net))
============================================================== FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS: TSX market report........................................ Canadian dollar and bonds report...................
Top News: Canada .................................... Today in Canada..................................... Canadian company news ................................ Reuters global stocks poll (Canada)...
FOR CANADIAN MARKETS DATA, CLICK ON CODES IN BRACKETS: Canadian Equities speed guide...................... S&P/TSX Composite index ............................. S&P/TSE Venture composite index ..................... TSX most active....................................... Venture Exchange most active........................... Top TSX pct gainers................................... Top TSX pct losers.................................... S&P/TSX 60 index ..................................... 52 week highs:
TSX............... Venture.............. 52 week lows:
TSX............... Venture.............. Canadian dollar quote.....................
FOR MAIN GLOBAL MARKET DATA AND MARKET REPORTS:
FTSE EUROTOP 300 ..... EUROPEAN REPORT .......
Nikkei 225............. Tokyo report............
FTSE 100............... London report...........
Xetra DAX............. Frankfurt market stories
CAC-40................. Paris market stories...
World Indices.....................................
Foreign exchange......................................
Oil....................................................
US Treasuries..........................................
International bonds...................................
Gold....................................... or
CRB index of commodity futures........................ Keywords: MARKETS CANADA STOCKS
* TSX drops 0.41 pct to 11,436.92, ends week up 4.4 pct
* Gold miners slide on lower bullion price
* Big gain in Canadian jobs spurs C$ rise, rate hike talk
* Muted action ahead of holiday weekend
(Adds details, comments)
By Ka Yan Ng
TORONTO, Oct 9 (Reuters) - Currency swings played a big role on Friday in knocking Toronto's main stock index to its first lower close this week.
The Canadian dollar, pushed higher by a stronger-than-expected jobs report, created discomfort for exporters, while a surge by the U.S. dollar put resource issues under pressure.
Heavyweight miners such as Barrick Gold Corp dropped 0.96 percent to C$41.25, while Goldcorp slid 0.78 percent to C$44.25 as the price of gold backed away from record highs hit earlier this week.
Potash Corp led all notable decliners, shedding 3.6 percent to C$94.44, after Dahlman Rose & Co initiated coverage of the fertilizer company with a 'sell' rating. It gave rival Agrium a 'buy' rating, but the stock moved with most of the materials group lower, falling 2.8 percent at C$53.93.
'A lot of today's action is driven by currencies,' said Elvis Picardo, analyst and strategist at Global Securities in Vancouver. 'There is increasingly speculation that we may see rate hikes sooner rather than later in Canada.'
The S&P/TSX composite index closed down 47.59 points, or 0.41 percent, at 11,436.92, ending the week up 4.4 percent.
U.S. Federal Reserve chairman Ben Bernanke said at a conference on Thursday he was thinking of an exit strategy from quantitative easing and low interest rates as the U.S. economy improves.
That sparked a broad rally in the U.S. dollar against major many currencies, but not against the Canadian dollar, which shot to a one-year high because of the employment report. The Canadian currency and recent data was seen testing the Bank of Canada's resolve to hold rates unchanged through mid-2010.
After four straight triple-digit gains for the TSX, the market may have been ripe for a retreat, particularly ahead of a holiday weekend in Canada.
The TSX will be closed on Monday for Thanksgiving.
(Reporting by Ka Yan Ng) ============================================================== FOR CANADIAN MARKETS NEWS, CLICK ON CODES IN BRACKETS: TSX market report........................................ Canadian dollar and bonds report................... Top News: Canada .................................... Today in Canada..................................... Canadian company news ................................ Reuters global stocks poll (Canada)... FOR CANADIAN MARKETS DATA, CLICK ON CODES IN BRACKETS: Canadian Equities speed guide...................... S&P/TSX Composite index ............................. S&P/TSE Venture composite index ..................... TSX most active....................................... Venture Exchange most active........................... Top TSX pct gainers................................... Top TSX pct losers.................................... S&P/TSX 60 index ..................................... 52 week highs: TSX............... Venture.............. 52 week lows: TSX............... Venture.............. Canadian dollar quote..................... FOR MAIN GLOBAL MARKET DATA AND MARKET REPORTS: FTSE EUROTOP 300 ..... EUROPEAN REPORT ....... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt market stories CAC-40................. Paris market stories... World Indices..................................... Foreign exchange...................................... Oil.................................................... US Treasuries.......................................... International bonds................................... Gold....................................... or CRB index of commodity futures........................ Keywords: MARKETS CANADA STOCKS (kayan.ng@thomsonreuters.com; Reuters Messaging: kayan.ng.reuters.com@reuters.net; 416-941-8109) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
