(MENAFN- ProactiveInvestors - N.America) Toronto's main market was lower Wednesday as investors remained anxious ahead of U.S. Federal Reserve meetings and as worries about Europe continued to keep traders on edge.
Spain's recession is deepening, but borrowing costs are still easing. With the nation's slumping economy, high unemployment and troubled banking sector, it is anticipated that the country will be forced to seek a bailout soon.
Meanwhile, Greece is also struggling with its debt and a faltering economy that is likely to mean the country will need billions of euros in aid to avoid bankruptcy.
Back in Toronto, the S&P/TSX Composite was down 44.64 points, or 0.37%, to 11,965.26 as of 12:40 p.m. ET, while the more junior S&P/TSX Venture Composite was lower by 13.58 points, or 1.09%, at 1,228.30.
Most of the main sectors were lower Wednesday afternoon, save financials, which was up 0.40%.
Meanwhile, gold for December delivery receded $10.10 to $1,659.60 an ounce, while silver futures declined 21 cents to $30.75 an ounce.
Crude oil for October lost $1.31 cents to $95.02 a barrel as production concerns related to Hurricane Isaac eased, amid a report from the EIA on a surprise increase in crude stockpiles. The base metal copper contract lost 3 cents to $3.44 a pound.
Gold giants Goldcorp (TSE:G) and Barrick Gold (TSE:ABX) were lately down 0.84% and 1.85% respectively, while Kinross (TSE:K) fell 1.61%.
Elsewhere in the metals and mining sector, gold company Banro Corp. (TSE:BAA) said today it has reached commercial production at its Twangiza gold mine in the Democratic Republic of Congo.
SouthGobi Resources (TSE:SGQ) (HKSE:1878) said today that its proposed sale of the Tsagaan Tolgoi thermal coal deposit to Australian Modun Resources (ASX:MOU) has been cancelled, with mutual agreement from both parties. Shares were down around 4%.
Tiger Resources (ASX:TGS) (TSE:TGS) said today that it has agreed to acquire a 19.9 per cent stake in Zambian-focused copper explorer Chrysalis Resources (ASX:CYS), while also announcing a resource uplift of more than 16 per cent at one of the deposits on its Kipoi copper project.
Century Iron Mines Corp. (TSE:FER) surged up over 19%, after the company announced Monday that an updated NI 43-101 resource estimate for its Duncan Lake iron project in Quebec increased its total resources by 89 per cent. The company noted that the updated estimate also increased the average grade for measured, indicated and inferred resources.
The energy sector was lately lower, with Suncor Energy (TSE:SU) off 1.3%, Canadian Natural Resources (TSE:CNQ) down 1.08%, while Talisman Energy (TSE:TLM) advanced 1.07%.
Fairborne Energy (TSE:FEL) was lower by almost 7%, after it announced late Tuesday it entered into two asset purchase and sale agreements for the divestiture of certain dry natural gas assets, for gross proceeds of $189 million. Closing of the transactions is anticipated to occur on or about October 1, 2012.
In the financial sector, the Bank of Nova Scotia (TSE:BNS)(NYSE:BNS), which trades as Scotiabank, was up 0.91%, while Canada's biggest bank, the Royal Bank of Canada (TSE:RY), edged up 0.20%.
Insurer Manulife Financial Corporation (TSE:MFC) gained 0.36% and Sun Life Financial (TSE:SLF) slipped 0.57%.
In other Canadian corporate news, shareholders in Progress Energy Resources Corp. (TSE:PRQ) have approved a takeover bid from Malaysia's state oil company Petronas at $22.00 a share, or near $6 billion, including debt.
On the economic slate, Statistics Canada reports that the Industrial Product Price Index was down 0.5% in July compared with June, due mostly to chemical products and motor vehicles and other transportation equipment. The Raw Materials Price Index rose 0.9%, because of higher prices for mineral fuels and vegetable products.
US/Europe
U.S. stocks were choppy Wednesday afternoon, following the latest reports on U.S. economic growth and pending home sales, and as investors awaited Federal Reserve Chairman Ben Bernanke's speech later in the week.
The Dow was lately up 7.32 points to 13,110.31, while the Nasdaq gained 0.14 points to 3,077.28, and the S&P 500 rose 1.01 points to 1,410.31.
On the economic front, the National Association of Realtors said its pending home sales index rose to 101.7 in July from 99.3 in June, which is 12.4% above July 2011 levels. The data reflect contracts but not closings.
Additionally, GDP reports said the U.S. economy expanded somewhat faster in the second quarter than originally reported because of higher consumer spending and slower growth in imports, the government said Wednesday.
Gross domestic product increased at a 1.7% rate in the April-to-June period, up from a first reading of 1.5%, the Commerce Department said. GDP - the value of all goods and services produced in the U.S. - is the broadest measure of an economy's health.
The U.S. has grown at below-average rates since exiting the last recession in mid-2009, held back mainly by poor job growth. The nation's unemployment rate has hovered above 8 per cent for 42 straight months, marking the longest period of prolonged labor-market weakness since the Great Depression.
The Federal Reserve releases its Beige Book, a regional snapshot of economic conditions, mid-afternoon Wednesday.
In U.S. corporate news, H.J. Heinz Co. (NYSE:HNZ) Wednesday posted higher fiscal first-quarter earnings, helped by growth in emerging markets.
For the quarter that nded July 29 the maker of Heinz ketchup and Ore-Ida frozen potatoes said net income was $258 million, or 80 cents per share compared with $226.1 million, or 70 per share a year earlier.
Retailer Genesco (NYSE:GCO) swung to a second-quarter profit on Wednesday amid revenue growth and solid same-store sales gains, triggering a boost to its earnings outlook.
Zale Corp.'s (NYSE:ZLC) fiscal fourth quarter net loss narrowed, thanks to increased revenue as the fine jewellers same-store sales and margins improved.
High-end retailer Jos. A. Bank Clothiers Inc.'s (NASDAQ:JOSB) stock popped over 17% after reporting its second-quarter profit and revenue grew, as it beat market expectations.
Joy Global (NYSE:JOY) Wednesday said its third-quarter earnings and sales increased, but lowered its fiscal guidance on an anticipated restructuring charge, lower demand for U.S. coal and a sluggish Chinese economy.
ArQule (NASDAQ:ARQL) stock fell 21.5% on Wednesday on safety concerns about its drug candidate tivantinib.
European markets finished mixed as of the most recent closing prices. The DAX gained 0.11%, while the FTSE 100 led the CAC 40 lower. They fell 0.56% and 0.51%, respectively.
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