Friday, October 24th7.5°C
23888
22916

TSX closes higher amid worse than expected economic data from eurozone

TORONTO - The Toronto stock market closed slightly higher Thursday amid dismal economic data from Europe.

The S&P/TSX composite index climbed 28.45 points to 15,291.18, held back by losses in energy and mining stocks.

The Canadian dollar was up 0.12 of a cent to 91.72 cents US.

U.S. indexes also advanced as Wal-Mart cut its annual profit forecast, with the Dow Jones industrials ahead 61.78 points at 16,713.58, the Nasdaq up 18.87 points at 4,453, and the S&P 500 index climbing 8.46 points to 1,955.18.

There was grim news from the eurozone as Germany’s economy, the region’s biggest, shrank by a quarterly rate of 0.2 per cent, held back by weaker investment by business and by fears over the crisis in Ukraine.

"It reaffirms we aren’t out of the woods yet," said Tim Caulfield, co-lead manager of Franklin Bissett Canadian Equity Fund, adding this means that the European Central Bank is more likely to step up with further stimulus.

France, the region’s second-largest economy, showed zero growth for the second straight quarter. Third-ranked Italy shrank.

Ukraine fears have only grown since the end of the quarter on June 30, particularly after a Malaysian airliner was shot down in mid-July by a missile in eastern Ukraine.

Markets seemed reassured by comments from Russian President Vladimir Putin, who said Russia’s goal was "to stop bloodshed in Ukraine as soon as possible."

His comment came as a large Russian aid convoy resumed its journey toward Ukraine on Thursday, taking a road leading directly toward a border crossing controlled by pro-Russian rebels.

Moscow has insisted it co-ordinated the dispatch of the goods with the International Red Cross. But the Red Cross was unable to confirm where the convoy was headed.

Sentiment picked up in the final minutes of the session after Iraqi state TV reported that Nouri al-Maliki has given up the post of prime minister to Haider al-Abadi, who was tasked with forming a new government earlier this week by Iraq’s president.

Despite the geopolitical anxieties, markets have proved resilient this month amid a steady stream of positive Canadian earnings news.

"In Canada, that’s been a very good news story to date," Caulfield said.

"Second-quarter earnings per share is coming in approximately at a 20 per cent increase versus the second quarter of 2013. We're generally seeing companies beat expectations (and) the expectation is still there for mid-teens growth in earnings for 2014 as a whole," he said.

The financials and industrials groups led TSX advancers.

The base metal sector led decliners, down 1.76 per cent with September copper down two cents at US$3.10 a pound.

The energy sector lost 0.94 per cent, while September crude in New York declined $2.01 to US$95.58 a barrel, reflecting Wednesday's data showing a surprise hike in U.S. inventories last week and the weak European growth data.

The gold sector lost about one per cent as December bullion rose $1.20 to US$1,315.70 an ounce.

Iamgold Corp. (TSX:IMG) reported a US$16-million net loss and $8.8 million in adjusted earnings for the second quarter. The adjusted earnings, reported in U.S. currency, amounted to two cents per share, a penny below analyst estimates. Its shares rose 13 cents to $4.33.

The Canadian Press


Read more Business News

23630


Recent Trending




Today's Market
S&P TSX14543.82+56.99
S&P CDNX805.45-3.15
DJIA16805.41127.51
Nasdaq4483.715+30.923
S&P 5001964.58+13.76
CDN Dollar0.8901-0.0003
Gold1231.20+2.10
Oil81.02-0.73
Lumber336.40+6.80
Natural Gas3.631+0.009

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07+0.015
Anavex Life Sciences0.194-0.004
Metalex Ventures0.045+0.005
Russel Metals33.39+0.23
Copper Mountain Mining2.03-0.05
Colorado Resources0.145+0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.445+0.035

 





FEATURED Property
20883592819 Bentley Rd
4 bedrooms 3 baths
$444,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


22771