The Toronto stock market closed little changed Wednesday as strong economic data from the United States failed to bolster investor confidence and there was little positive reaction to Greek moves to reassure markets that it can meet the conditions for a crucial bailout.
The S&P/TSX composite index edged 7.56 points higher to 12,362.03. The TSX Venture Exchange gained 3.55 points to 1,633.58.
Higher commodity prices helped push the loonie up 0.04 of a cent to 100.09 cents US.
New York markets were lower as doubts about whether the U.S. Federal Reserve will embark on another round of stimulus overshadowed a strong reading on U.S. factory output.
The Fed said manufacturing output increased 0.7% in January. And it soared a 1.5% in December. December’s figure was revised sharply upward to the biggest gain since December 2006.
The Dow Jones industrials lost 97.33 points to 12,780.95. The Nasdaq composite index fell 16 points to 2,915.83 while the S&P 500 index gave back 7.27 points to 1,343.23.
Greece’s finance minister had vowed that all pending issues in its international creditors’ requirements for the country’s second bailout would be completed ahead of a Wednesday evening conference call between eurozone finance ministers.
An earlier scheduled meeting was called off because Athens had not met all the requirements for the €130-billion bailout, including plugging a €325-million financing gap. The ministers also demanded written guarantees from the governing coalition’s party leaders that tough austerity measures would be put into place, even after elections scheduled for April.
Greece needs the bailout in order to head off default late next month.
But impatience with Greece, which has often missed deficit targets and been slow to respond to the demands of its eurozone partners, has been growing. And by Wednesday afternoon, a European official warned that Greece’s assurances might not be enough.
Other analysts sounded equally bleak.
“I would not be the least surprised to see Greece completely collapse and leave the eurozone,” said John Johnston, chief strategist at Davis Rea Ltd.
“They can get out of it (but) the fact is the cuts being imposed by Europe on Greece are unbearable, politically and socially unbearable.”
Pessimism about rescuing Greece also grew as fresh data showed that Greece’s economy contracted by 6.8% last year and at an accelerating 7% rate in the last quarter. The showing was far worse than expected and the deteriorating economy is playing havoc with budget targets, forcing Greece to cut deeper.
Markets also failed to find support from the minutes of the latest meeting of the U.S. Federal Reserve. They showed that the central bank appears open to the idea of a third round of bond purchases to boost a still-modest recovery. But members remain divided over when or whether to launch another round of stimulus.
The energy sector led advancers, up 0.44% as crude oil advanced following a report by Iranian state TV that the country had cut oil exports to six European countries in response to planned European Union sanctions against Tehran, which include a boycott of new oil contracts with Iran.
The March contract on the New York Mercantile Exchange gained $1.06 to US$101.80 a barrel.
Traders also took in earnings reports from two of Canada’s biggest energy companies.
Shares in Talisman Energy Inc. (TSX:TLM) gained 61 cents or 4.87% to C$13.13 as it cut its net loss to US$117 million or 11 cents a share in the latest quarter from US$350 million a year ago. Production averaged 426,000 oil equivalent barrels a day, a 9% increase over the previous year. Meanwhile, annual cash flow jumped 16% to $3.4 billion.
However, Cenovus Energy Inc. (TSX:CVE) gave up earlier gains and moved down 52 cents to $38.08 as it increased its dividend 10% to 22 cents a share.
The oilsands operator and refiner posted quarterly net earnings of $266 million, or 35 cents per share, an increase from $78 million, or 10 cents per share, a year ago. But operating earnings were 44 cents per share, 11 cents short of expectations.
The TSX gold sector was down about 0.3% with April gold ahead $10.40 to US$1,728.10. Goldcorp Inc. (TSX:G) faded 23 cents to $45.20.
The mining sector was down 0.26% as March copper gave up early gains and was down one cent at US$3.80 a pound. Teck Resources (TSX:TCK.B) lost 49 cents to $38.48 and Ivanhoe Mines (TSX:IVN) rose 42 cents to $16.77
Industrial stocks led decliners with Canadian Pacific Railway (TSX:CP) down $1.65 to $73.03.