TSX movers, gold and FQM.
The day began with news out of China that the country’s Premier, Li Keqiang, will not allow GDP growth to dip below 7%. These remarks however were in contrast to the Finance Minister’s indication a few weeks ago that GDP growth of 6.5% is perfectly acceptable. Nevertheless, resource related stocks had another great day because of this news. However, even though good news out of China is typically good for Canada, the S&P/TSX Composite (^GPTSE) still ended the day in the red, falling 13 points or -0.10%.
CN Rail (TSX:CNR) and its 3.2% decline was the biggest drag on today’s Canadian market. The company reported quarterly results after last night’s close, and even though it “beat” expectations, much of this beat was due to lower taxes and other non-operating factors. The company also guided to a weaker than expected Q3. These tempered expectations were not very well received by CN’s shareholders.
As indicated, helping to offset CN’s impact were stocks tied to the Materials sector. First Quantum (TSX:FM) and its gain of 6.6% was the biggest positive contributor on the day. First Quantum is a sizeable copper producer and copper prices were buoyed by the news out of China. The 3-month forward contract rose 1.6% on the day.
Copper wasn’t the only metal that made a move. Spot gold also climbed a shade more that $7/oz to finish at close to $1,343/oz. This provided a tail wind for two more of today’s big positive contributors – Goldcorp (TSX:G) and Barrick Gold (TSX:ABX). Each stock booked a gain of 2.4% on the day. Goldcorp and Barrick owners are eagerly awaiting tomorrow’s earnings report out of Agnico-Eagle, as it is likely to signal just how bad (or good) goldland really is right now.
