FIN: TSX inches up, U.S. markets down in early trading
North American markets were mixed early Monday as investors digested sobering comments from the U.S. Federal Reserve chairman and a European leaders meet to discuss a possible extension to their rescue package for heavily-indebted euro nations.
In Toronto, the benchmark S&P/TSA composite index was up 27.78 points, or 0.21%, at 13,206.73 — following five straight gains the previous week.
Before the start of trading, Statistics Canada reported building permits were down 6.5% in October. Economists had expected permits to fall by about 4% during the month.
The Canadian dollar was trading around 99.29 cents US. down 38 basis points from Friday’s close.
On the New York Mercantile Exchange, the price of crude oil slipped to $89.02 US a barrel, after closing at $89.19 US on Friday. Gold was around $1,413.50, up from its previous close of $1,406.20 US.
In the U.S., the Dow Jones industrial was down 27.85 points, or 0.24%, at 11,354.24 and the Nasdaq composite was down 2.21 points, or 0.09%, at 2,589.25.
On Sunday, Federal Reserve chairman Ben Bernanke, in a rare television interview, held out the possibility that the U.S. central bank could increase its government bond purchases beyond the $600 billion US already committed. Those comments followed disappointing U.S. employment figures on Friday.
“All in, his comments suggest that he is more likely to expand, rather than curb, the Treasury purchase program, especially if the unemployment rate doesn’t turn convincingly lower in coming months,” Sal Guatieri, an economist at BMO Capital Markets, said in a morning note.
Overseas markets were mixed on Monday. The FTSE 100 index in London was 0.30% at midday, while Frankfurt’s DAX was up 0.08% and the Paris CAC 40 was down 0.20%.
Eurozone finance ministers were meeting Monday in Brussels to consider raising the IMF-EU’s 750-billion euro financial rescue package. However, Germany has already rejected the idea of increasing the size of the EU safety net.
In Asia, the Nikkei stock average in Tokyo ended down 0.11% and Hong Kong’s Heng Seng index lost 0.36%.
On Friday in North America, the S&P/TSX finished up 15.42 points, or 0.12%, to 13,178.95 — its highest level this year. The Dow Jones gained 19.68 points, or 0.17%, to 11,382.09 and the Nasdaq rose 12.11 points, or 0.47%, to 2,591.46.
