Roger Biduk writes:
Toronto's S&P/TSX composite index came closed down 105.44 points at 12,532.63, after commodity stocks deteriorated. The TSX Venture Exchange was down 37.39 points to 1,538.6.
The Canadian dollar was down 0.27 of a cent to 96.5 cents US as investors took in a higher than expected reading on inflation for August.
Statistics Canada said Tuesday the annual rate of inflation hit 3.5 per cent, primarily because of higher costs for gasoline and oil. Core inflation rose to 1.7 per cent in August, from 1.5 per cent in July.
However, the TSX financial sector were up two per cent with CIBC (TSX:CM) ahead $1.80 to $62.27 while Scotiabank (TSX:BNS) advanced $1.57 to $49.38.
Investors also closely watched oil prices after anxiety over the bailout and a short-covering rally powered crude to its biggest-ever one-day rise Monday.
The TSX energy sector was off two per cent as the November crude contract on the New York Mercantile Exchange receded $2.76 to US$106.61. Sector heavyweight EnCana (TSX:ECA) was down 84 cents to $73.36 while Suncor Energy Inc. (TSX:SWU) fell $1.35 to $48.05.
The TSX gold sector moved down 3.5 per cent as the December bullion contract in New York backed off $17.80 to US$891.20 an ounce. Goldcorp Inc. (TSX:G) gave back 78 cents to $37.11 while Barrick Gold Corp. (TSX:ABX) declined 81 cents to $38.80.
The base metals sector, which along with the energy sector has enjoyed some sharp recent gains on U.S. dollar weakness and a move into so-called hard assets, was also down 3.5 per cent with Teck Cominco Ltd. (TSX:TCK.B) losing $1.23 to $35.52 and HudBay Minerals (TSX:HBM) off 12 cents to $6.69.
Also dragging the TSX lower was Potash Corp. (TSX:POT), down $18.03 or 9.7 per cent to $167.80.
The Brookfield Residential Property Services division of Brookfield Asset Management Inc. (TSX:BAM.A) has agreed to buy GMAC Home Services, a U.S. provider of home financing, real estate brokerage and relocation services. The price was not disclosed and Brookfield Asset shares were off eight cents to $27.84.
On the TSX, declines beat advances 973 to 561 with 219 unchanged as 404.4 million shares traded worth $7.05 billion.
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Roger Biduk is an investment advisor and services clients in Montreal, Hudson, West Island and throughout the provinces of Quebec & Ontario.
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