Stock markets close in the red as traders take profits amid eurozone inflation concerns
TORONTO The Toronto stock market closed in the red on the final day of January trading on Friday as worries about European deflation and currency troubles in emerging markets persuaded investors to step back after a big run up.
However, markets were well off earlier lows as the S composite index dropped 40.34 points to 13,694.94.
New York’s Dow industrials dropped 149.76 points to 15,698.85, the Nasdaq slipped 19.25 points to 4,103.88 and the S 500 index lost 11.6 points to 1,782.59.
Data showed that inflation in the eurozone fell to 0.7% in the 12 months to January from 0.8% the previous month.
The data raised worries that the region could slip into a situation where prices are actually falling. Such deflation can hurt an economy as consumers delay purchases and businesses postpone investment.
The deflation concerns added to emerging market currency worries that have buffeted markets this past week.
The TSX is up 0.53% for the month and the Dow industrials is down 5.3 cent. But analysts suggested that a reason for the decline is that investors simply wanted to cash in on a huge rally last year that left the Dow up well over 20%. market has only fallen 4% this month peak to tro timberland uk ugh.
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TSX losses were paced by a 1.65% fall in the base metals sector as March copper in New York lost three cents to US$3.19 a pound.
Uranium miner Cameco (TSX:CCO) is selling its share of the Bruce Power nuclear partnership in southwestern Ontario to Borealis Infrastructure for $450 million. Cameco shares were down 91 cents to $23.67.
Financials also weighed, down 0.93%.
The gold sector slipped about 0.4% as gold gave back $2.70 to US$1,239.80 an ounce.
The industrials group was slightly lower after Canadian National Railway (TSX:CNR) missed quarterly earnings estimates by a penny a share as results were impacted by tough winter conditions. CN shares gained 27 cents to $59.61 as the railway upped its quarterly dividend by 16% to 25 cents and RBC Capital Markets raised its rating to outperform.
Meanwhile, CN also said that 3,000 unionized train conductors, trainpersons, yardpersons and traffic co ordinators failed to ratify a tentative contract that was reached in October.