 |
|
Oilweek Magazine
|
 |
Oilweek subscribers can click on the cover to access their full-version digital copy of the current edition of the magazine.
|
|
| |
| Subscribe Now! |
| |
 |
|
| |
Click here to view a free sample digital edition of Oilweek magazine. As a paid subscriber, all issues of the magazine, including back issues, are online for you to read, search, and reference. |
|
|
| |
|
|
|
|
Latest Headlines
|
|
|
Mar 22, 2010 7:58:00 AM MST
Stock markets open lower amid worry about Greece''s ability to repay debt (Dollar-Markets)
|
|
TORONTO _ The Toronto stock market moved sharply lower Monday as commodity prices ped and the U.S. dollar rose amid fresh worries about the ability of Greece and other European countries to pay down their debts.
The S&P/TSX composite index moved down 86.2 points to 11,861.8 as sovereign debt worries helped push the market down 65 points last week.
The TSX Venture Exchange was 13.73 points lower to 1,550.32.
The Greek debt crisis continued to attract investor attention after Germany´s chancellor said on Sunday that a bailout for Greece won´t be discussed at a European summit this week. Greece has said in recent days if other European countries do not provide support, it might turn to the International Monetary Fund for help.
Investors are worried that Greece and other European nations that use the euro, such as Spain and Portugal, could struggle to recover as they try to pay down steep debt. That could derail a global economic recovery.
On top of worries about how Greece can refinance its debt, The Bank of Greece said Monday it expects the country´s economic output to contract by two per cent in 2010 _ worse than a government prediction.
The Canadian dollar backed away as the U.S. dollar attracted nervous traders and gained strength against a number of currencies. The loonie was down two-thirds of a US cent to 97.73 cents US.
Commodity prices also wilted under the weight of a stronger greenback with the April crude contract on the New York Mercantile Exchange falling $1.85 to US$78.83 a barrel. The energy sector moved back just over one per cent and Canadian Natural Resources (TSX:CNQ) shed 77 cents to $72.44.
The tepid performance in the energy sector came amid a report from the Conference Board of Canada which predicts profits in the natural gas sector will increase in 2010. It added that higher prices will offset lower production. Nexen Inc. (TSX:NXY) moved down 28 cents to $24.13.
The base metals sector was the leading Toronto decliner, down 2.2 per cent as May copper lost six cents to US$3.32 a pound. Teck Resources (TSX:TCK.B) fell 96 cents to $39.09 and First Quantum Minerals (TSX:FM) fell $2.35 to $86.93.
The gold sector faded 1.44 per cent with the April gold contract on the New York Mercantile Exchange down $12.30 to US$1,095.30 an ounce. Barrick Gold Corp. (TSX:ABX) was off 35 cents to $39.79.
Financials were also a drag on the TSX with Manulife Financial (TSX:MFC) down 38 cents to $19.76.
Canadian telecom stocks will also be in focus with The Canadian Radio-television and Telecommunications Commission set to rule Monday on the so-called TV tax or fee for carriage. Cable companies say such a fee could add $10 a month to consumers´ bills if the regulator rules they have to pay broadcasters for their local signals. The decision is expected after the market close. Rogers Communications (TSX:RCI.B) was 11 cents lower to $35.26.
New York markets were down slightly with the Dow Jones industrial average down 10 points to 10,732.
The Nasdaq composite index declined 8.58 points to 2,365.83 while the S&P 500 index ped 4.7 points to 1,155.2.
Investors also looked for reaction to the U.S. government´s passage of a sweeping package of health-care legislation over the weekend. The reform, which was passed narrowly by the House of Representatives, will near-universal medical coverage and extend benefits to 32 million uninsured Americans.
In early trading, the healthcare segment on the NYSE was down 0.2 per cent but performance was mixed. Pfizer fell 32 cents to US$16.91 while Amgen rose US$1.60 to US$60.
Further weighing on investor sentiment Monday was the move by India´s central bank on Friday to raise interest rates. The quarter-point hike to cool high inflation unnerved investors concerned growth and asset prices could sink once governments start winding down their stimulus measures.
India´s move was unexpected while the Bank of Canada has been telegraphing for months that it planned to raise interest rates sometime after mid-2010. Confirmation of low inflation came last Friday when Statistics Canada said consumer prices rose 1.6 per cent last month _ slightly above expectations _ following a 1.9 per cent increase the previous month.
Stocks in Asia were down on the Greek uncertainty and the India rate hike, with Hong Kong´s Hang Seng plunging 2.1 per cent. Japanese markets were closed for a national holiday. Australia´s market fell 0.9 per cent and India´s Sensex ped 0.7 per cent.
London´s FTSE 100 index fell 1.13 per cent, Frankfurt´s DAX lost 1.14 per cent while the Paris CAC 40 ped 1.27 per cent.
In corporate news, Osisko Mining Corp. (TSX:OSK) plans to acquire Hammond Reef gold project in Ontario through a takeover of Brett Resources Inc. of Vancouver (TSXV:BBR) in a all-stock deal valued at $372 million.
Osisko is offering 0.34 of one of its common shares for each share of Brett. Based on a Friday closing prices, Osisko´s offer is worth $2.92 per share _ a premium to Brett´s market price of $2.09 on the TSX Venture Exchange. Osisko stock was down 24 cents to $8.5.
|
|
|
|
|
|
|
