TSX edges lower in thin trade as Fed fears return

Mon Nov 11, 2013 5:28pm EST
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index slipped on Monday in light yet choppy trading as increasing concern the U.S. Federal Reserve might begin to pull back from its easy money policy sooner rather than later weighed on energy and mining stocks.

Those worries were a drag on the price of bullion, sending down shares of gold producers and helping overshadow gains in the industrial and information technology sectors.

Investors pondered positive export data from China and a U.S. non-farm payrolls report that showed on Friday that the world's largest economy added more jobs than expected in October.

With the Remembrance Day holiday in Canada and Veterans Day in the United States, trading volumes were light

"Today's action is extremely muted as a number of markets are closed," said Elvis Picardo, a strategist and vice president of research at Global Securities in Vancouver.

"Canadian investors would do well to stay in the market because it looks like the TSX is trying to make up for lost ground," he said, adding that the resource groups offer good value, despite the recent volatility.

Having gained about 3.6 percent in the last month, the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 19.94 points, or 0.15 percent, at 13,358.39 on Monday.

About 212 million shares changed hands, compared with an average daily volume of about 294 million shares in October, according to market operator TMX Group.   Continued...

 
An electronic board displays the midday TSX index in Toronto February 16, 2011. REUTERS/Mark Blinch