Market signals mixed as Wall Street reopens after July 4 holiday
As Wall Street traders return from the U.S. Independence Day holiday, global indicators were mixed for North American stock markets early Thursday.
Wall Street stock futures rose slightly on recent deal-making news and ahead of data on the U.S. service sector.
The Institute for Supply Management's index of the service sector in June is expected to slip to 58.1 from 59.7 in May, indicating that non-manufacturing industries saw slower expansion.
Chemical company Huntsman Corp. said Wednesday a private-equity firm made a cash buyout offer of about US$6 billion that trumps last week's bid from a Dutch company. And a Coca-Cola Co. spokesman said Wednesday the company is looking into buying Cadbury Schweppes PLC's Snapple iced tea brand or building its own tea brand.
Key European indexes were down in early action and crude oil prices rose.
Asian markets were mixed as the region's two major bourses in Japan and Hong Kong advanced, shrugging off a 5.3 per cent plunge in Chinese shares.
Markets in Hong Kong, Indonesia, South Korea and the Philippines hit records even as other markets sagged.
In Hong Kong, the Hang Seng Index added 34.44 points, or 0.2 per cent, to 22,252.99, the third straight record closing high.
On the Chinese mainland, stocks tumbled amid worries about possible government tightening measures and the concerns about the slew of new share listings. The Shanghai composite index fell 5.3 per cent to 3,615.87 while the Shenzhen composite index of China's smaller, second market plunged 5.8 per cent to 1,015.85.
In Tokyo, the Nikkei 225 index climbed 52.76 points, or 0.29 per cent, to close at 18,221.48. The index has risen for a sixth straight session, gaining 2.09 per cent over the period and bringing it near a seven-year high reached June 21.
The Canadian dollar opened at 94.48 cents US, up 0.02 of a cent.
-Oil prices seem headed for another 10-month high, with a barrel of light sweet crude rising 54 cents to US$71.95 in pre-market trading on the New York Mercantile Exchange. Later Thursday, the Energy Department releases its weekly report on U.S. petroleum inventories.
-The dollar fell against the euro and the British pound after the Bank of England raised its benchmark interest rate by 0.25 per cent for the fifth time in less than a year to 5.75 per cent, as expected.
-Yamana Gold Inc. (TSX:YRI) and Northern Orion Resources Inc. (TSX:NNO) say they will not increase their bid for Meridian Gold Inc. (TSX:MNG), saying the current offer "represents full and fair value" of the company.
On Wednesday, the Toronto stock market put in a flat performance as investors stepped back after two sessions of triple-digit gains, lacking direction from south of the border with U.S. markets closed for a holiday.
Toronto's S&P/TSX composite index closed 4.35 points lower to 14,060.39 in light trading, held back by falling energy and financial stocks.
The TSX Venture Exchange rose 4.76 points to 3,207.55 and the Canadian dollar was up 0.16 of a cent to 94.46 cents US.
The Toronto market's telecom sector was the major advancer, up 1.17 per cent as shares in Telus Corp. (TSX:T) ran ahead $1.05 or 1.65 per cent to $65.65 as BCE's potential delisting from the TSX narrows investor choices.
The mining sector advanced almost one per cent as investors hope other smaller companies will be snapped up for big share price premiums. HudBay Minerals (TSX:HBM) moved up $1.03 to $24.98.
Vaaldiam Resources Ltd. (TSX:VAA) shares were up two cents to 94 cents after the firm proposed to buy producer Elkedra Diamonds NL and explorer Great Western Diamonds Corp. (TSXV:GWD) to form one of Canada's largest diamond firms with a market capitalization of more than $160 million. The deal is valued at about $95 million.
The energy sector was down 0.42 per cent even as oil held firm.
Research in Motion Ltd. (TSX:RIM) shares ticked 36 cents lower to $220.07 even as the BlackBerry maker said it recently won permission to sell its e-mail device in China. RIM has tried for eight years to crack the world's largest cellphone market. An official in RIM's Beijing office says the company expects the BlackBerry to go on the market at the end of August.
Last Updated: Thu, 05 Jul 2007 18:32:00
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