MT: U.S. economic data, Chinese lending concerns push
TORONTO - The Toronto stock market was lower Thursday morning with investors preoccupied by economic concerns while taking in a series of positive U.S. earnings reports.
The S&P/TSX composite index lost 71 points to 11,608.3 as data from China raised fresh concerns about how much that country can help developed nations pull out of a severe economic slump.
China's economic growth came in at 10.7 per cent in the fourth quarter and 8.7 per cent last year. The rapid growth reinforced concerns that China will move to cut lending and tighten monetary policy to put a lid on inflation, which could dampen a global economic rebound.
In the U.S., data showed jobless claims rose unexpectedly last week, reminding investors any recovery is going to be slow and bumpy. The U.S. Labour Department says workers filing for unemployment benefits for the first time rose by 36,000 to 482,000. Economists were expecting a small decline.
The Canadian dollar was down 0.06 of a cent to 95.45 cents US.
The tech sector was the major advancer on the TSX, up 0.83 per cent with Research In Motion Ltd. (TSX:RIM) ahead $1.42 to $68.41.
The industrials sector lent support as railways made headway. Canadian National Railways (TSX:CNR) pulled ahead 70 cents to $55.74.
The energy sector inched up 0.25 per cent as the March crude contract on the New York Mercantile Exchange was ahead 33 cents to US$78.07 a barrel.
Husky Energy Inc. (TSX:HSE) said Wednesday it has managed to shave more than $1 billion off the price tag of its Sunrise oilsands project, part of a joint-venture with British energy giant BP PLC. The Calgary-based company said it now expects Phase 1 of the project to cost $2.5 billion, down from earlier estimates of $3.8 billion to $4 billion. Husky shares inched up a penny to C$28.69.
A stronger U.S. dollar and concerns about Chinese expansion had pushed oil down $1.40 on Wednesday.
The base metals sector moved 2.1 per cent lower even as March copper climbed two cents at US$3.38 a pound. First Quantum Minerals (TSX:FM) lost $1.89 to C$93.81 while Teck Resources (TSX:TCK.B) ell 88 cents to $40.59.
Inmet Mining Corp. (TSX:IMN) said Wednesday that copper production in 2009 was slightly below
