TSX slips on first trading day of 2014
By John Tilak
TORONTO (Reuters) - Canada's main stock index fell on Thursday after signs of a slowdown in China's manufacturing industry helped fuel declines in the energy and financial sectors, offsetting gains in gold-mining shares.
A selloff in oil prices, as Libya prepared to restart a major oilfield and market speculation of a rise in crude stockpiles in Cushing, Oklahoma, further dampened investor sentiment. <O/R>
Official and private manufacturing surveys showed Chinese factory activity moderated in December. Data indicating that U.S. manufacturing grew in December at its fastest pace in 11 months failed to give investors a boost.
The export-driven Canadian market eased on the first trading day of 2014, after recording a 9.6 percent gain last year, when equity markets rallied on the back of liquidity injected into the market by the U.S. Federal Reserve.
"The overwhelming theme we're likely to see in 2014 could be the same theme we saw in 2013, which is the eventual withdrawal of the extraordinary monetary stimulus we've seen in the United States and all over the world," said Craig Lazzara, global head of index investment strategy at S&P Dow Jones Indices.
"You would expect interest rates would go up; you would expect that to flow through the entire global financial system, certainly including Canada," he added.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 27.36 points, or 0.20 percent, at 13,594.19.
Investors were cautious about the prospects for the Toronto stock market, whose gains in 2013 badly trailed those of U.S. indexes. Continued...