Canadian Stocks Fluctuate as Gold Producers Advance, Energy Shares Decline. Canadian stocks swung between gains and losses as gold producers rose on a weaker U.S. dollar and energy shares fell with oil prices after FedEx Corp.’s profit forecast signaled a slowing economy.
Suncor Energy Inc. fell 1.8 percent as oil fell the most this month. Kinross Gold Corp., Canada’s third largest gold producer, rose 4.7 percent. Potash Corp. of Saskatchewan Inc. gained 0.9 percent after a report the fertilizer producer is seeking to counter BHP Billiton Ltd.’s takeover bid by forming a Chinese-led buyout group.
The Standard & Poor’s/TSX Composite Index climbed 6.4 points to 12,151.22 at 11:32 a.m. in Toronto. The index has outgained the S&P 500 this year through yesterday, 3.4 percent to 0.9 percent, as gold surged 16 percent. Gold companies make up 11 percent of Canadian stocks by market value, according to Bloomberg data.
“Whenever there’s negative economic news, oil seems to fall and gold seems to rise,” said Barry Schwartz, who helps oversee C$360 million as a money manager at Baskin Financial Services Inc. in Toronto. The FedEx profit forecast is pulling oil lower, he said.
FedEx is considered an economic bellwether because it ships everything from industrial goods to consumer electronics and pharmaceuticals. The company’s forecast for the current quarter of no more than $1.35 a share missed the average analyst estimate by 2 cents and indicated the global economic recovery is uneven because U.S. shipments are lagging behind growth in overseas deliveries.
Bullion, Crude
Bullion futures climbed as high as $1,279.50 an ounce as the U.S. dollar fell to a five-week low against the euro. Gold is heading for its 10th consecutive annual gain, the longest winning streak since at least 1920.
Crude oil for October delivery fell 1.7 percent, to $74.83 a barrel as Enbridge Energy Partners LP prepared to start a pipeline that supplies Canadian crude to refineries in the U.S. Midwest. Enbridge Inc., parent of Enbridge Energy, slipped 1 percent to C$51.71.
Suncor Energy, Canada’s largest oil and gas producer, fell 1.8 percent to C$33.08, extending its loss for the year to 8.9 percent.
Royal Bank of Canada, the country’s biggest lender, led a decline in financial shares, falling 0.8 percent to C$54.07. Toronto-Dominion Bank slipped 0.9 percent to C$75.50.
The 10 biggest gainers in the S&P/TSX Index were mining companies. Centerra Gold Inc. increased 5.4 percent to C$17.20, Yamana Gold Inc. advanced 4 percent to C$11.22, and Gammon Gold rose 2.8 percent to $7.67. Kinross advanced 4.7 percent to C$18.40.
Potash Corp. is seeking to put together a Chinese-led group of investors to support a buyout of the company to counter BHP’s takeover offer, the Globe & Mail reported today, without saying where it got the information. BHP, the world’s largest mining company, has offered $40 billion, or $130 a share, for Saskatoon, Saskatchewan-based Potash Corp., the world’s biggest fertilizer producer.
Potash Corp. shares increased 0.9 percent to C$148.50.
To contact the reporter on this story: Inyoung Hwang at ihwang7@bloomberg.net.
source: http://www.bloomberg.com/
Suncor Energy Inc. fell 1.8 percent as oil fell the most this month. Kinross Gold Corp., Canada’s third largest gold producer, rose 4.7 percent. Potash Corp. of Saskatchewan Inc. gained 0.9 percent after a report the fertilizer producer is seeking to counter BHP Billiton Ltd.’s takeover bid by forming a Chinese-led buyout group.
The Standard & Poor’s/TSX Composite Index climbed 6.4 points to 12,151.22 at 11:32 a.m. in Toronto. The index has outgained the S&P 500 this year through yesterday, 3.4 percent to 0.9 percent, as gold surged 16 percent. Gold companies make up 11 percent of Canadian stocks by market value, according to Bloomberg data.
“Whenever there’s negative economic news, oil seems to fall and gold seems to rise,” said Barry Schwartz, who helps oversee C$360 million as a money manager at Baskin Financial Services Inc. in Toronto. The FedEx profit forecast is pulling oil lower, he said.
FedEx is considered an economic bellwether because it ships everything from industrial goods to consumer electronics and pharmaceuticals. The company’s forecast for the current quarter of no more than $1.35 a share missed the average analyst estimate by 2 cents and indicated the global economic recovery is uneven because U.S. shipments are lagging behind growth in overseas deliveries.
Bullion, Crude
Bullion futures climbed as high as $1,279.50 an ounce as the U.S. dollar fell to a five-week low against the euro. Gold is heading for its 10th consecutive annual gain, the longest winning streak since at least 1920.
Crude oil for October delivery fell 1.7 percent, to $74.83 a barrel as Enbridge Energy Partners LP prepared to start a pipeline that supplies Canadian crude to refineries in the U.S. Midwest. Enbridge Inc., parent of Enbridge Energy, slipped 1 percent to C$51.71.
Suncor Energy, Canada’s largest oil and gas producer, fell 1.8 percent to C$33.08, extending its loss for the year to 8.9 percent.
Royal Bank of Canada, the country’s biggest lender, led a decline in financial shares, falling 0.8 percent to C$54.07. Toronto-Dominion Bank slipped 0.9 percent to C$75.50.
The 10 biggest gainers in the S&P/TSX Index were mining companies. Centerra Gold Inc. increased 5.4 percent to C$17.20, Yamana Gold Inc. advanced 4 percent to C$11.22, and Gammon Gold rose 2.8 percent to $7.67. Kinross advanced 4.7 percent to C$18.40.
Potash Corp. is seeking to put together a Chinese-led group of investors to support a buyout of the company to counter BHP’s takeover offer, the Globe & Mail reported today, without saying where it got the information. BHP, the world’s largest mining company, has offered $40 billion, or $130 a share, for Saskatoon, Saskatchewan-based Potash Corp., the world’s biggest fertilizer producer.
Potash Corp. shares increased 0.9 percent to C$148.50.
To contact the reporter on this story: Inyoung Hwang at ihwang7@bloomberg.net.
source: http://www.bloomberg.com/
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