Saturday, August 29th21.0°C
27214

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




Recent Trending




Today's Market
S&P TSX13865.07+98.40
S&P CDNX555.67+10.10
DJIA16643.01-11.76
Nasdaq4828.32+15.62
S&P 5001988.87+1.21
CDN Dollar0.75730.00
Gold1119.50-5.10
Oil45.26+2.70
Lumber237.20-9.70
Natural Gas2.724+0.060

 
Okanagan Companies
Pacific Safety0.165+0.005
Knighthawk0.010.00
QHR Technologies Inc1.29+0.05
Cantex0.04-0.01
Anavex Life Sciences1.34-0.05
Metalex Ventures0.055+0.000
Russel Metals21.41+0.43
Copper Mountain Mining0.64-0.01
Colorado Resources0.075-0.005
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.025+0.005
Mission Ready Services0.07+0.01
Decisive Dividend Corp2.75+0.14

 



27509

FEATURED Property
22073284771 Rittich Road
5 bedrooms 3 baths
$869,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_



27313

27511


Member of BC Press Council


24222