TSX Flat Ahead Of FOMC - Canadian Commentary

(RTTNews) - Canadian stocks were lingering in the red Wednesday morning as trader turned cautious ahead of the release of the minutes of the Federal Reserve's June policy meeting. Also, the International Monetary Fund slashed its global growth forecast for a fifth consecutive time and warned that China and other emerging economies face new risks "including the possibility of a longer growth slowdown''

The European markets are mostly lower as investor sentiment impacted by data out of China and as Standard & Poor's lowered the sovereign rating of Italy by one notch, citing weak economic prospects.

The S&P/TSX Composite Index eased 14.46 points or 0.12 percent to 12,282.64, after adding nearly 200 points or just over 1 percent in the past two sessions.

Fertilizer makers Potash Corp. (POT.TO) and Agrium Inc. (AGU.TO) were down close to 2 percent each.

Smart-phone maker Research In Motion (BB.TO) lost about 5 percent.

The price of gold was steady Wednesday morning, with the US dollar moving lower against its key counterparts in early deals ahead of the U.S. FOMC minutes and the Federal Reserve Chairman Bernanke's speech, which are due later in the global day. Gold for August gained $11.40 to $1,257.30 an ounce.

Among gold stocks, Detour Gold (DGC.TO) rose over 2 percent, while Barrick Gold (ABX.TO) was adding about 1 percent.

Latest data from the EIA revealed that US crude oil inventories dived 9.90 million barrels and gasoline stocks shed 2.60 million barrels in the weekended July 05. Analysts expected crude oil inventories to dip by 2.90 million barrels and gasoline stock to shed 200,000 barrels last week.

The OPEC in its monthly oil market report released today said it sees little change in global oil demand growth in 2013, while noting that world oil demand is projected to grow at a higher rate of 1.0 mbd to average 90.7 mbd in 2014.

Crude for August gained $2.16 to $105.69 a barrel.

In the oil patch, Niko Resources (NKO.TO) dived over 5 percent, while Bonavista Energy (BNP.TO) was adding close to 3 percent. Suncor Energy (SU.TO) and Baytex Energy Corp. (BTE.TO) gathered around 1 percent each.

Convenience stores operator Alimentation Couche-Tard Inc. (ATD_A.TO, ATD_B.TO) recouped nearly 5 percent. Yesterday, the stock lost about 5 percent even after reporting improved fourth-quarter net earnings at $146.4 million or $0.77 per share compared to $117.8 million or $0.65 per share in the same quarter last year.

In economic news from the U.S., the Commerce Department said wholesale inventories fell by 0.5 percent in May following a revised 0.1 percent decrease in April. The drop surprised economists, who had been expecting inventories to rise by 0.3 percent compared to the 0.2 percent increase originally reported for the previous month.

From the euro zone, Germany's EU harmonized inflation accelerated in June as initially estimated, final data released by the Federal Statistical Office showed. Inflation as per the harmonized index of consumer prices increased to 1.9 percent in June from 1.6 percent in May. The outcome matched the preliminary estimates.

Elsewhere, China posted a merchandise trade surplus of $27.1 billion in June, falling below forecasts for a surplus of $27.8 billion. Exports were down 3.1 percent from a year earlier, below estimates for an increase of 3.7 percent, while imports dipped an annual 0.7 percent compared to forecasts for a 6 percent jump.