Canada's commodity-heavy benchmark stock index was the lone decliner in major North American markets on Thursday, dropping along with metals and oil prices.
It was the third straight negative close for the S&P/TSX composite index, which fell 47.85 points, or 0.36 per cent, to 13,181.23. Five of the 10 sub-indexes lost ground.
The price of oil felt the impact of a forecast for warmer temperatures in the United States this winter, dropping 92 cents U.S. to $87.70 U.S. a barrel.
Metals fell on speculation that China would raise its interest rates. The price of gold was $1,371.00 U.S. an ounce at the close, a decline of $15.20 U.S..
The Canadian dollar slipped 19 basis points to close at 99.41 cents U.S..
The Thomson Reuters/Jefferies CRB Commodity Price Index fell on Thursday after a Hong Kong-based economist said in a report that China may raise rates to curb inflation.
"We know China is trying to shut the taps down a bit. That's like a two-by-four to the head," said Robert Sneddon, president of money manager Castlemoore Inc. in Oakville, Ont.
The junior Venture exchange rose 4.87 points, or 0.23 per cent to 2,105.81.
Economic news was thin on Thursday. Reports out of the U.S. signalled the economic recovery there is continuing: initial jobless claims for the week came in lower than estimated and housing starts beat estimates as well.
That was enough to take U.S. indexes to a positive finish, with the Dow Jones industrial average closing up 41.78 points or 0.36 per cent to 11,499.25, and the Nasdaq composite gaining 20.09 points, or 0.77 per cent, to 2,637.31.
"The news that's out is supportive of an improving economy," Tom Wirth, senior investment officer for Chemung Canal Trust Co. in Elmira, New York, told Bloomberg. "It's not an economy that's taking off, but in a stable state of growth. There's bullish sentiment on the Street and managers that need to get money to work."
Metals producers lost ground on the day. Barrick Gold Corp. was down 1.48 per cent to $51.97. Agnico-Eagle Mines Ltd. slipped 5.73 per cent to $76.16 after reducing its production outlook.
Energy giant Suncor fell 1.19 per cent to $36.48.
Gainers on Thursday included George Weston, which rose as much as eight per cent in intraday trading, falling back to close at $82.86, a 4.38 per cent increase, after announcing a special dividend of $7.75 a share.
Research In Motion rose for the first time this week ahead of its third-quarter earnings report after the close on Thursday. It closed with a gain of 0.22 per cent but was up 3.73 per cent to $62.02 in after-hours trading shortly after reporting a 40 per cent year-after-year gain in earnings.
Manulife Financial rose 2.23 per cent to $16.98 after a Bank of Montreal analyst raised his share-price estimate, saying the stock is undervalued.
