Business
Markets fall despite financials pledge
Markets fall despite financials pledge
About this update from Hudbay Minerals Inc
[{"type":"text","content":"\nMarkets fall despite financials pledge\n\nFear follows Washington's support\n Feb. 10, 2009 (Baystreet.ca) -- 12:29 pm EST\nThe good vibes for North American stocks seemed to have faded by midday on Monday, as sentiment turned against a pledge by U.S. regulators to do whatever it takes to support the American financial system.. The S&P TSX Composite Index had slumped 79.16 by noon to 7,870.83,Canadian investors also took in a major deal as Nova Chemicals Corp. has agreed to be bought out for $2.3 billion U.S. by Abu Dhabi-based International Petroleum Investment Co.Shares in Nova Chemicals plunged to a new low earlier this month as traders assessed heavy losses and looming financing deadlines in a deepening recession but soared $5.08 or 306% to $6.74 in Monday trading.Canada's big banks are preparing to report their first-quarter earnings for 2009 starting this week and Warne said expectations are fairly minimal.TD Bank, which reports Wednesday, was ahead 43 cents to $33.68 but Manulife Financial moved down 11 cents to $13.01.The energy sector was also flat, off its best levels of the morning as gains in crude prices reversed. Canadian Natural Resources improved 52 cents to $38.78 but EnCana Corp. gave back 57 cents to $47.70.The base metals sector was the leading advancer, with Teck Cominco Ltd. ahead 15 cents to $3.95 and HudBay Minerals climbed 31 cents to $4.98.The gold sector was the leading decliner as Barrick Gold Corp. faded $1.28 to $44.80.Shares in Iamgold Corp. added three cents to $10.73 after the company said proven and probable reserves at the end of 2008 were 9.6 million ounces, an increase of 20% from a year earlier.Industrials were also a drag as Canadian National Railways gave back 61 cents to $40.20.From the economic world, retail sales in December fell 5.4% in December to $33 billion - the largest monthly decline in over 15 years.Statistics Canada says three-quarters of the December retail decline was rooted in the automotive sector, without which retail sales fell 1.8%.Cheerful news came out Monday, however, reporting consumer confidence reversed ground in December and was making its way up to its highest levels since August. The Harris-Decima survey of 2,000 people between Feb. 5 and Feb. 15 found 27% predicting they'll be better off a year from now, against 13% who expect to be worse off in early 201...