[July 21, 2011] TSX up amid signs of slowing Chinese economy, hopes for Greek debt crisis Tweet (Canadian Press DataFile Via Acquire Media NewsEdge) By Malcolm Morrison TORONTO _ The Toronto stock market was slightly higher Thursday amid a sign that European leaders are close to dealing with a comprehensive plan to deal with Greece's government debt crisis. The S&P/TSX composite index moved 16.22 points higher to 13,357.05 after the Dutch finance minister leaked details of a plan that would include private sector involvement and apparently will put in the country in default. Jan Kees de Jager didn't give full details but said that the banks that hold Greek bonds would be obliged to participate in the plan, a key demand of Germany and the Netherlands. He said banks would be offered a variety of choices, but all would mean they have to bear some of the costs of a new aid package. The TSX Venture Exchange gained 7.96 points to 2,025.82. The Canadian dollar climbed 0.33 of a cent to 105.88 cents US after earlier surging to a three-and-a-half-year high of 105.98 cents US, its highest level since the end of November, 2007. The financials sector led advances, up 0.53 per cent Commodities were mixed amid data showing that Chinese manufacturing activity fell to a 28-month low in July following repeated rate hikes and other measures to cool an overheated economy. HSBC Corp.'s manufacturing index fell to 47.2 from June's 50.1 on a 100-point scale on which numbers below 50 show activity declining. The Chinese economy has had a huge appetite for commodities, which in turn have lifted prices for oil and copper and resource stocks on the Toronto stock market. But the Chinese government has been trying to slow down the economy through interest rate hikes and larger reserve requirements for banks in order to bring down high inflation. The September crude contract on the New York Mercantile Exchange shook off early losses to move up 63 cents to US$99.03 a barrel and the energy sector rose 0.44 per cent. Suncor Energy (TSX:SU) rose 19 cents to C$38.52. Energy giant Encana Corp. (TSX:ECA) rose to a second quarter profit of $176 million, turning around a $457 million loss posted at the same time a year earlier and beating analyst expectations. Its shares gained 30 cents to $30.13. The base metals sector was off 0.32 per cent with the September copper contract on the Nymex was off four cents to US$4.40 a pound. Lundin Mining (TSX:LUN) rose five cents to C$7.30 and Quadra FNX Mining was down 14 cents to $15.15. The gold sector was flat as gold prices advanced after two days of declines, up $2.40 to US$1,599.30 an ounce. Goldcorp Inc. (TSX:G) shed 39 cents to C$51.04. Traders also watched for progress on the U.S. government debt limit. Traders have also been looking to American lawmakers to find a way to get the U.S. debt limit raised and avoid a debt default before an Aug. 2 deadline. Momentum on a separate bipartisan budget plan by the Senate's so-called "Gang of Six" seemed to ebb Wednesday. Critics warned the measure contains larger tax increases than advertised. U.S. markets were mainly positive amid signs of an improving job market. Applications for unemployment benefits rose by 10,000 to a seasonally adjusted 418,000, the Labour Department said Thursday. However, the four-week average, a less volatile measure, dipped to 421,250. The Dow Jones industrial average gained 36.67 points to 12,608.58. The Nasdaq composite index was off 4.31 points to 2,809.92 while the S&P 500 index gained 5.58 points to 1,331.42. In earnings news, Loblaw Companies Ltd. (TSX:L) said its second quarter earnings grew 8.8 per cent to $197 million or 70 cents per share, from $181 million or 65 cents per share a year earlier. Revenue was relatively flat at $7.28 billion, compared to $7.27 billion. Mobile phone maker Nokia Corp. on Thursday posted a loss of euro368 million (US$523 million) in the second quarter and for the first time was overtaken by Apple's iPhone in smartphone shipments. A year ago, Nokia posted a profit of euro227 million. Revenue in the most recent quarter fell seven per cent to euro9.3 billion. In Asia, Japan's Nikkei 225 closed up less than 0.1 per cent, China's Shanghai Composite Index lost one per cent while Hong Kong's Hang Seng closed down 0.1 per cent. European markets were mixed as London's FTSE 100 index dipped 0.24 per cent, Frankfurt's DAX was down 0.11 per cent while the Paris CAC 40 added 0.42 per cent. (c) 2011 The Canadian Press [ Back To TMCnet.com's Homepage ]