The Toronto Stock Exchange was up modestly in Tuesday’s initial trading as data on Canada’s economic growth was disappointing, but gold prices gained in the face of global uncertainty.
As trading began, the S&P/TSX composite index was up 12.02 points, or 0.09%, to 12,907.67.
That followed Statistics Canada’s report that the national economy grew one% on an annualized basis in the third quarter, below expectations for 1.5%. Looking at September specifically, the economy shrank 0.1%
Crude oil in New York was down 93 cents US to $84.80 US a barrel. Gold gained $17.60 US to $1,385.10 US an ounce.
The Canadian dollar fell 92 basis points to 97.25 cents US.
On a global basis, concern remained that the sovereign-debt crisis in Europe will spread. The European Union approved a bailout package for Ireland over the weekend, following in the footsteps of Greece earlier this year. As well, there are growing expectations that China will raise interest rates to curb its inflation.
In the U.S., the S&P/Case-Shiller index of housing prices in major U.S. markets was up 0.6% in September from a year earlier, the worst showing since January and less than the one% gain economists expected.
Looking at U.S. stock markets, the Dow Jones industrial average was down 91.35 points, or 0.83%, to 10,961.14 in early trading. The Nasdaq composite index declined 26.36 points, or 1.04%, to 2,498.86.
In Europe, the U.K.’s FTSE index fell 27.96 points, or 0.5%, to 5,522.99. France’s CAC index was down 39.46 points, or 1.08%, to 3,597.50. The DAX in Germany was off 34.53 points, or 0.52%, to 6,663.44. It was learned that the number of unemployed people in Germany fell for the 17th straight month, but not enough to change the jobless rate from 7.5%.
Asian markets were down. Japan’s Nikkei fell 188.95 points, or 1.87%, to 9,937.04. Hong Kong’s Hang Seng index was down 158.23 points, or 0.68%, to 23,007.99. Mainland China’s Shanghai composite fell 46.18 points, or 1.61%, to 2,820.18.
Besides the prospect of higher interest rates in China, Asian investors learned that Japan’s unemployment rate rose to 5.1% last month. It was expected to remain at five%.
On Monday, the S&P/TSX rose 2.94 points, or 0.02%, to 12,895.65. The Dow Jones fell 39.51 points or 0.36%, to 11,052.49. The Nasdaq was down 9.34 points, or 0.37%, to 2,525.22.
