By RTT News, October 11, 2013, 11:14:00 AM EDT
(RTTNews.com) - Canadian stocks were struggling for direction Friday morning on optimism that a deal on the debt-ceiling may soon be reached in the U.S., as the partial government shutdown enters the 11th day. After days of deadlock, key Republicans led by House Speaker John Boehner held discussions for 90 minutes at the White House. The meeting didn't lead to a solution, but the two sides said they would continue talks in an effort to reopen the government and raise the nation's debt limit. Investors are expecting some sort of resolution to the fiscal deadlock by the end of this week.
The S&P/TSX Composite Index eased 12.96 points or 0.10 percent to 12,881.45, after adding just over 200 points or 1.5 percent in the past two sessions.
The Global Gold Index was down about 3 percent amid weak bullion prices. The price of gold was extending losses Friday morning, with the US dollar trading mixed versus a basket of currencies with Washington moving towards breaking a stalemate over debt and averting a US default. Gold for December lost $30.80 to $1,266.10 an ounce.
Among gold plays, Goldcorp. (G.TO), Agnico-Eagle Mines (AEM.TO) and Barrick Gold (ABX.TO) lost around 3 percent each. Seabridge Gold (SEA.TO) was down nearly 6 percent.
In the base-metals space, Teck Resources (TCK_B.TO) and First Quantum Minerals (FM.TO) were down close to 2 percent each.
Broadband wireless solutions provider Redline Communications Group Inc. (RDL.TO) dived over 12 percent after announcing that Eric Melka, its chief executive officer currently on medical leave, has advised of his plan to leave the Company by February 2014.
American Bonanza Gold (BZA.TO) plummeted 55 percent after it said Friday that it is placing the Copperstone Mine in Arizona on care and maintenance status until further notice.
The price of crude oil was moving lower Friday morning as traders fret over demand growth. Earlier today, the International Energy Agency in its monthly Oil Market Report, inched up its 2013 forecast by 90,000 barrels per day to reach 91.0 million barrels per day based on the recent strength in the demand. Crude for November shed $1.26 to $101.75 a barrel.
In the oil patch, MEG Energy (MEG.TO) and Imperial Oil (IMO.TO) were up around 1 percent each.
Sierra Wireless (SW.TO) edged up 0.50 percent after announcing that it would acquire substantially all of the assets of AnyDATA's machine-to-machine or M2M embedded module and modem business. M2M embedded module and modem products generated approximately $10 million U.S. in revenue during the last 12 months and the business is modestly profitable.
In economic news Statistics Canada said the economy created 11,900 jobs in September, while the unemployment rate declined 0.2 percentage points to 6.9 percent as fewer youths searched for work. Economists expected 10,000 job creations last month. However, employment was up 212,000 or 1.2 percent compared with 12 months earlier.
From the euro zone, Germany's EU harmonized inflation stayed unchanged in September as estimated earlier, final figures released by the Federal Statistical Office showed. The harmonized index of consumer prices (HICP) increased 1.6 percent year-on-year in September, which was unchanged from the growth rate seen in August. The September outcome was also in line with the preliminary estimates.
Meanwhile, Germany's wholesale prices declined for the second consecutive month in September, official data showed. Wholesale prices declined 2.2 percent year-on-year in September, which was the biggest fall since November 2009, Destatis said. The decline was faster than the 1.7 percent fall seen in August.
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