Source: The Canadian Press

The Toronto stock market was unable to find traction Wednesday, closing with a moderate loss amid a broad-based decline that saw all sectors move lower.

The S&P/TSX composite index fell 48.14 points to 12,144.84, while the TSX Venture Exchange gained 8.04 points to 1,630.24.

Commodity prices took a hit after the Japanese government bought U.S. dollars to put the brakes on the surging yen, which is battering manufacturers like Toyota and Sony after spiking to 15-year highs. This sent the greenback higher, which in turn pressured commodities priced in U.S. dollars.

“It’s reasonable to say that markets were set up for a pause, and then we got the yen intervention from the Bank of Japan overnight, which basically forced the U.S. dollar stronger relative to the Japanese yen, which keeps commodities at bay,” said Sid Mokhtari, market technician at CIBC World Markets.

The October crude contract on the New York Mercantile Exchange lost 78 cents to US$76.02 a barrel as the U.S. dollar moved higher and a report showed U.S. crude supplies jumped last week, suggesting demand remains tepid.

The Toronto energy sector lost 0.6%, as shares in Suncor Energy Inc. (TSX:SU) fell 20 cents to C$33.70.

The base metals sector was the biggest loser Wednesday, falling 1.8% as the December copper contract lost 0.2 of a cent to US$3.47 a pound. Shares in Teck Resources Ltd. (TSX:TCK.B) were down 92 cents or 2.3% to C$39.68.

The December gold contract lost $3 to US$1,268.70 an ounce after soaring Tuesday to a record high. Gold stocks moved lower after billionaire financier George Soros warned that gold is in the “ultimate bubble.”

Goldcorp Inc. (TSX:G) shares fell 44 cents to C$43.70.

The financial sector slipped 0.1%. Shares in CIBC (TSX:CM) lost 34 cents to $74.65 after Lehman Brothers Holdings Inc. sued the bank and other defendants for US$3 billion, arguing they unfairly had their claims paid ahead of Lehman’s own when the insolvent investment banker filed for bankruptcy two years ago.

Investor optimism also took a hit after Statistics Canada reported that manufacturing sales fell 0.9% in July to C$44.3 billion on weakness in the automotive, paper products and furniture industries. Economists had expected the number to be unchanged from June.

Sales fell in 12 of 21 industries, representing about half of Canada’s total manufacturing sales.

“The decline in the volume of sales in July is disappointing and suggests that manufacturing will likely act as a drag on overall GDP growth in the month after acting as a solid support in June,” observed Nathan Janzen, economist with RBC Economics.

The Canadian dollar edged up 0.13 of a cent to 97.43 cents US.

In New York, markets finished higher following a day of directionless trading after an index of manufacturing activity in New York state fell to its lowest level since July 2009 and the U.S. Federal Reserve reported that industrial production rose modestly in August.

The Dow Jones industrial average gained 46.24 points to 10,572.73. The Nasdaq composite index was up 11.55 points at 2,301.32, while the S&P 500 edged up 3.97 points to 1,125.07.

In Canadian economic news, the Canadian Real Estate Association reported that seasonally adjusted sales of existing homes in August rose 4.1% from July, the first monthly increase since March, while prices remained flat.

In corporate news, shares in Kinross Gold Corp. (TSX:K) and Red Back Mining Inc. (TSX:RBI) jumped after shareholders of both companies approved a $7.1-billion merger. Kinross shares added 48 cents or 2.7% to $18.02, while Red Back shares gained $1 or 3.2% to $32.32.

Forestry company West Fraser Timber Co. Ltd. (TSX:WFT) doubled its quarterly dividend to six cents per share. Shares in West Fraser gained 89 cents or 2.4% to $38.75.

Gold miner Centamin Egypt Ltd. (TSX:CEE) said it has increased proven and probable reserves at its Sukari mine by nearly a third. Shares in Centamin added 18 cents or 7.1% to $2.72 two days after the company revised its 2010 production estimate downwards by about 20%, sending its shares tumbling by more than 10%.

MDS Inc. (TSX:MDS) met analyst expectations for revenue at US$53 million in its fiscal third quarter, but the restructured Canadian life sciences company reported a loss rather than a profit for the three months ended July 31. Shares in MDS were down 19 cents at C$10.16.

Retail giant Canadian Tire Corp. (TSX:CTC.A) announced that it is making changes in the executive suite and shifting its separate units under one corporate umbrella to eliminate unnecessary duplication and bloated costs. Shares in Canadian Tire lost 43 cents to $56.48.

And Enbridge Inc. (TSX:ENB) was on the hot seat in the U.S. capital, facing accusations at a congressional hearing that it knew full well about defects in one of its pipelines before a leak spilled millions of litres of oil into a rural Michigan river this summer. Shares in Enbridge gained 15 cents to $52.24.