Canadian Stocks Lower As China Inflation Figures Take Shine Off Mining Sector
Canadian stocks are down around 30 points mid-afternoon Friday on some profit taking - particularly in the mining sector after it led the overall index to an 80 point gain yesterday.
Mining stocks have lost their shine after China earlier today reported higher-than-expected inflation during November, rising 2.0% and sparking concerns government officials may withdraw their stimulus in response. This has also damped hopes for renewed buying of Canadian commodities.
In economic news, merchandise imports into Canada rose 2.7% during November, while exports decreased 0.9%. As a result, Canada's trade deficit with the world widened from $552 million in October to $2.0 billion in November.
In company news, Inmet Mining (IMN.TO) is little changed after its largest shareholder, Leucadia National Corp. ( LUK ), agreed to back First Quantum's (FM.TO) C$5.1 billion takeover bid. FM is up nearly 2%. LUK has a 15.1% IMN stake.
Also, Methanex (MX.TO, MEOH) is a little lower on the TSX after saying it expects to idle its Chile operation in March due to an anticipated shorfall in natural gas supplies. The plant represents less than 5% of the company's expected production this year.
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