Canadian markets moved in and out of positive territory Wednesday, as data showed Canada's trade deficit with the rest of the world widened more than expected in December.
The Toronto Stock Exchange's S&P/TSX composite index was up 9.23 points, or 0.08 per cent, to 11,283.47 in early trading.
On the New York Mercantile Exchange, crude oil was up four cents U.S. to $73.79 U.S. a barrel. Gold was up $2.40 U.S. in early trading to $1,074.80 U.S. an ounce.
The Canadian dollar rose 14 basis points to 93.78 cents U.S..
Statistics Canada data showed Wednesday that imports rose 1.8 per cent during in December, while exports increased 1.7 per cent, pushing the trade deficit to $246 million from a revised $201 million in November. Economists expected a deficit of about $100 million in December.
Millan Mulraine, economics strategist at TD Securities, said the report suggests that "despite the strong domestic currency, the Canadian economy is beginning to be a net beneficiary from the recent pickup in global economic activity."
Air Canada reported a smaller net loss of $56 million, or 25 cents a share, in the fourth quarter of 2009 compared with a net loss of $727 million, or $7.27 a share, in the fourth quarter of 2008. On an adjusted basis, the airline reported a loss of 62 cents a share, which was better than expectation of a 69-cent loss for the quarter. Its shares were trading at $1.34, up two cents.
Talisman Energy Inc. on Wednesday reported net loss of $111 million, or 11 cents a share, compared with a profit of $1.20 billion, or $1.17, a year ago, mainly on weaker natural gas prices. Its shares were trading at $17.88, down 12 cents.
Life sciences company MDS Inc. said Wednesday it has agreed to sell its Pharma Services Early Stage business for $45 million in cash and equity interests. The sale, to Ohio-based Ricerca Biosciences LLC, includes $20 million in cash, a five-year $25-million note and a 15 per cent equity interest in the new company. MDS shares were trading at $8.39, down five cents.
In the U.S., the Dow Jones industrial average fell 14.44 points, or 0.14 per cent, to 10,044.20. The Nasdaq composite index was up 0.18 points, or 0.01 per cent, to 2,151.05.
U.S. Commerce Department data showed the trade deficit widened more than expected to $40.2 billion in December from $36.4 billion in November. The increase was mainly due to petroleum imports.
U.S. mortgage applications fell seven per cent last week, according to the Mortgage Bankers Association. While applications are up moderately in January, they remain close to 12-year lows, despite the extended and expanded homebuyer tax credit.
Overseas markets were higher Wednesday. Euro zone countries met ahead of a European Union summit Thursday about a possible financial bailout plan for Greece, according to Reuters, sending European markets higher. Also, the Bank of England lowered its growth and inflation forecast in its Quarterly Inflation Report, increasing the likelihood of more monetary stimulus.
The U.K.'s FTSE index was up 38.69 points, or 0.76 per cent, to 5,150.53 at midday. The DAX index in Germany gained 50.26 points, or 0.91 per cent, to 5,548.52 and France's CAC added 29.57 points, or 0.82 per cent, to 3,642.33.
In Japan, machine orders surged 20.1 per cent in December, more than doubling expectations and offsetting the prior month's disappointing 11 per cent slide. Japan's Nikkei index rose 31.09 points, or 0.31 per cent, to 9,963.99. Hong Kong's Hang Seng index added 131.94 points, or 0.67 per cent, to 19,922.22.
On Tuesday, the S&P/TSX composite index closed up 158.94 points, or 1.43 per cent, to 11,274.24. In the U.S., the Dow closed up 150.25 points, or 1.52 per cent, to 10,058.64. The Nasdaq was ahead by 24.82 points, or 1.17 per cent, to 2,150.87.
