TSX ends flat as gold weighs, eye on EU summit

Tue Jun 26, 2012 5:00pm EDT
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By Allison Martell

TORONTO (Reuters) - Canada's main stock index closed nearly flat on Tuesday, as losses in gold stocks were offset by gains in financial issues and fertilizer producers, with investors focused on a European Union summit on Thursday and Friday.

Spain's short-term borrowing costs nearly tripled and the euro fell as investors feared leaders would make little meaningful progress at the summit on the region's debt crisis. <MKTS/GLOB> <FRX/>

"The market is very thin. Everyone's waiting for the summit," said Irwin Michael, portfolio manager at ABC Funds. "There's no great impetus to do very much."

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 4.03 points, or 0.04 percent, at 11,334.42.

John Kinsey, portfolio manager at Caldwell Securities Ltd, said many investors were on the sidelines ahead of the summit, but he did not see major progress coming out of the meeting.

"They have a track record of just talking and talking, and nothing really concrete comes forward, so I don't know why this would be anything different," he said, adding volume was light as investors waited for the summit's outcome.

Gold retreated in quiet trade, hurt by fears of deflation amid disappointing U.S. consumer confidence data and worries about the escalating euro zone debt crisis. <GOL/>

"There is not a lot of impetus to buy (gold) here," said Michael. "People are looking for inflation, and we're not seeing a lot of inflation at this point."   Continued...

A Toronto Stock Exchange (TSX) logo is seen in Toronto November 9, 2007. REUTERS/Mark Blinch