By RTT News, October 09, 2013, 10:58:00 AM EDT
(RTTNews.com) - Canadian stocks were hovering in the green Wednesday morning as trader sentiment was impacted by the shutdown in the U.S. and slashing of growth forecast by the International Monetary Fund. While investors remain cautious ahead of the FOMC minutes, due out later today, news that Barack Obama will formally nominate dovish Janet Yellen as the next chief of the US Federal Reserve created some optimism.
The International Monetary Fund Tuesday trimmed its global growth forecasts for this year and next, given the policy challenges in the U.S. and slowing growth in the emerging markets. The IMF trimmed the forecast for the sixth time in a row.
The S&P/TSX Composite Index edged up 15.59 points or 0.12 percent to 12,708.00, a day after snapping its two-session winning streak.
The price of gold was moving lower Wednesday morning, with the US dollar trading firm versus a basket of currencies amid news of possible nomination of Janet Yellen to head the Federal Reserve. Gold for December lost $25.00 to $1,299.60 an ounce.
The Global Gold Index lost over 2 percent, with Detour Gold (DGC.TO) shedding over 7 percent. Royal Gold (RGL.TO), Agnico-Eagle Mines (AEM.TO) and Goldcorp. (G.TO) were down around 2 percent each.
Pretium Resources Inc. (PVG.TO) dived nearly 30 percent after it said that Strathcona Mineral Services Ltd., which had been engaged as the independent Qualified Person to oversee and report on the 10,000-tonne bulk sample for the Program, has resigned from the Project.
Latest data from the EIA revealed that US crude oil inventories jumped 6.80 million barrels and gasoline stocks edged up by 0.10 million barrels in the weekended October 04. Analysts expected US crude oil inventories to add a meager 1.4 million barrels last week.
Crude for November moved down $1.74 to $101.75 a barrel.
In the oil patch, Niko Resources (NKO.TO) and Suncor Energy (SU.TO) were up around 1 percent each.
Technology innovation and licensing company Wi-LAN Inc. (WIN.TO) and BlackBerry Ltd. (BB.TO) have inked an agreement to dismiss all pending patent litigations between the companies, with specific financial terms of the deal being confidential. Pursuant to this, BlackBerry has received a license to certain patents in suit in Florida. Both Wi-LAN and BlackBerry were trading firm.
Drugstore chain Jean Coutu Group (PJC), Inc. (PJC_A.TO) lost about 3 percent despite reporting a surge in second-quarter net profit to C$208.2 million or C$0.98 per share from last year's C$51.2 million or C$0.23 per share. Excluding the gains related to the investment in Rite Aid and change in fair value of other financial assets, net profit totaled C$49.9 million or C$0.24 per share in the recent period.
Aviation-training and simulation products provider CAE Inc. (CAE.TO) edged up 0.40 percent after it said that it was awarded about $140 million in military contracts, including about $85 million to CAE USA alone. The US contracts also include options valued at an additional $50 million over the next five years.
Petaquilla Minerals Ltd. (PTQ.TO) reported total revenue of $24.1 million for fourth quarter of fiscal 2013. Revenue From Gold for the quarter was $20.4 million, while gold Production for the quarter was 11,912 ounces. The stock gained over 10 percent.
Food retailer Loblaw Companies (L.TO) Tuesday asked the public not to consume President's Choice Thick & Juicy Burgers in package size 40 x 113 g (4 oz), as it may be contaminated with E.coli O157:H7. The product is sold at Loblaw banner stores across Canada. Shares of Loblaw edged up 0.50 percent.
In economic news from the euro zone, Germany's industrial production increased at a faster-than-expected pace in August, recovering from the previous month's contraction, latest data showed. Industrial production increased a seasonally and working-day adjusted 1.4 percent month-on-month in August, after falling 1.1 percent in July, preliminary data released by the Federal Ministry of Economics and Technology showed. Economists had forecast a more modest increase of 1 percent.
Meanwhile, U.K. industrial production declined unexpectedly by 1.1 percent in August from July, largely due to a 1.2 percent fall in manufacturing output after two consecutive increases, data from the Office for National Statistics showed. Economists had forecast industrial and manufacturing output to grow 0.4 percent each in August. In July, industrial production was up 0.1 percent and manufacturing output gained 0.2 percent.
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