TORONTO - The Toronto stock market was lower Tuesday, led by declines in commodity stocks as investors unnerved over the European debt crisis pushed the U.S. dollar higher, which helped to depress prices for oil and metals.
The S&P/TSX composite index fell 66.8 points to 12,129.7, off the worst levels of the morning as rising bullion prices lifted gold stocks. The TSX Venture Exchange lost 21.81 points to 1,643.73.
The greenback rose as traders avoided the currency used by 16 EU members, including Greece. The euro hit its lowest level in a year, sliding to US$1.3052.
The euro has come under renewed pressure as European governments have scrambled to find a solution to prevent Greece from defaulting on its debts. A euro110-billion (US$145.62-billion) aid package is now in the works with Germany bearing a lion's share of the load. Government approval is expected by the end of the week.
The Canadian dollar was also lower as investors fled to the safe haven status of the U.S. currency, falling 1.17 cents to 97.78 cents US.
Expectations of a buildup in inventories also pushed oil prices below US$85. The June crude contract on the New York Mercantile Exchange backed off $2 to US$84.19 a barrel.
The TSX energy sector lost 0.8 per cent with Canadian Natural Resources (TSX:CNQ) down $1.46 to $77.48.
Oil touched an 18-month high of US$87.15 a barrel Monday, and has jumped about 23 per cent since February on investor expectations that a growing U.S. and global economy will boost demand.
But U.S. crude inventories have risen in recent weeks and likely gained another 1.5 million barrels last week, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.
The Energy Department's Energy Information Administration is scheduled to release last week's supply data Wednesday.
In Canada's oilpatch, Suncor Energy Inc. (TSX:SU) beat earnings expectations as the company benefited from higher energy prices and its 2009 takeover of Petro-Canada. The Calgary-based company handed in earnings of $716 million, or 46 cents a share for the three months ended March 31. That compared with a net loss of $189 million or 20 cents a share for the first quarter of 2009 and its shares were ahead 60 cents at $35.28.
The base metals sector dropped 3.57 per cent as July copper on the Nymex declined six cents to US$3.22 a pound. Teck Resources (TSX:TCK.B) moved down $1.17 to $37.63 and HudBay Minerals (TSX:HBM) gave back 52 cents to $12.27.
Financials also weighed on the TSX with CIBC (TSX:CM) down 73 cents to $73.87.
Meanwhile, investors looking for safety sent the June bullion contract on the Nymex up $2.80 to US$1,186.10 an ounce. The TSX global gold index was the sole advancer, up 1.43 per cent and Barrick Gold Corp. (TSX:ABX) advanced 81 cents to $44.14.
In New York, the Dow Jones industrial average tumbled 137.6 points to 11,014.3 as investors also fret that a stronger dollar would cut into profits for U.S. companies that heavily rely on foreign operations.
The Nasdaq composite index lost 53.6 points to 2,445.14 while the S&P 500 index declined 16.65 points to 1,185.6.
Better than expected economic data failed to encourage buyers.
The U.S. Commerce Department said that orders to U.S. factories rose a surprising 1.3 per cent in March with widespread gains in many industries offsetting a big drop in commercial aircraft.
The showing was much better than the 0.1 per cent decline analysts had expected.
And the National Association of Realtors said that the number of buyers who signed contracts to purchase homes surged more than expected in March. Its seasonally adjusted index of sales agreements for previously occupied homes rose 5.3 per cent from a month earlier to a reading of 102.9, the highest level since October and a 21 per cent increase from the same month a year earlier.
In other earnings news, Loblaw Co. (TSX:L), Canada's largest grocery retailer said it earned $137 million or 50 cents per share during the last quarter - better than the 44 cents a share that analysts expected and up from $109 million or 40 cents per share a year ago.
Loblaws revenue was up 3.1 per cent compared with the same time last year, rising to $6.9 billion from $6.7 billion - thanks largely to the acquisition of T&T Supermarket Inc., a chain that caters to ethnic Chinese customers. Loblaws shares rose 79 cents to $38.59.
WestJet Airlines Ltd. (TSX:WJA) said it earned $13.8 million or 10 cents per diluted share in the first quarter on revenue of $619.8 million. Rising fuel costs helped drive down profit by 63 per cent from a year ago. Earnings missed expectations of 15 cents a share and its shares fell 43 cents to $13.22.
News and information giant Thomson Reuters (TSX:TRI) reported that its net income was US$134 million or 15 cents per share in the first quarter with US$3.14 billion of revenue. The profit was down $59 million from US$193 million in the first quarter of 2009, including discontinued operations. Revenue during the first quarter of 2009 was about $3.13 billion.
Thomson Reuters added that it continues to expect 2010 annual revenue will be flat or slightly below last year's and its shares dipped four cents to $36.74.
Beer maker Molson Coors (NYSE:TAP, TSX:TPX.B) said its first-quarter profit climbed 38 per cent to US$104.6 million on a tax-related gain. But consumers bought less of its beer and costs rose, causing adjusted results to miss analyst expectations. In New York, the company's stock was down 41 cents to US$44.13.
Overseas, Asian stocks were mostly lower Tuesday on investor concerns that Chinese moves to slow a soaring property market will undermine economic growth.
China's benchmark index in Shanghai led decliners, falling 1.5 per cent, while Taiwan's market dropped 0.3 per cent and Australia's index retreated one per cent.
Elsewhere, Hong Kong's Hang Seng was down 0.3 per cent.
Markets in Japan were closed for a holiday while China's markets were closed Monday.
London's FTSE 100 index moved back 1.87 per cent. Britain's main index was dragged down by BP PLC. Investors are concerned about the costs the oil company will face from an oil spill in the Gulf of Mexico.
Frankfurt's DAX declined 1.90 per cent while the Paris CAC 40 moved down 2.46 per cent.