Newspaper article The Canadian Press

TSX Slightly Higher on China Growth Worries, Escalating Russia/Ukraine Tensions

Newspaper article The Canadian Press

TSX Slightly Higher on China Growth Worries, Escalating Russia/Ukraine Tensions

Article excerpt

TSX up amid geopolitical, China worries

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TORONTO - The Toronto stock market closed with a small gain Tuesday amid concerns about China's growth and worsening tensions between Ukraine and Russia.

The S&P/TSX composite index climbed 19.49 points to 14,303.92.

The Canadian dollar was down 0.2 of a cent to 91.1 cents US a day ahead of the Bank of Canada's latest interest rate announcement. It is universally expected that the bank won't hike its key rate from one per cent, where it has been since September, 2010.

New York indexes closed higher at the end of a volatile session as the Dow Jones industrials gained 89.32 points to 16,262.56, the Nasdaq was 11.47 points higher at 4,034.16 and the S&P 500 index was ahead 12.37 points at 1,842.98.

Worries about the Ukraine crisis deepened after the government's first military action since acting President Oleksandr Turchynov announced an "anti-terrorist operation" against separatists who have seized control of numerous buildings in the east of the country. The government said troops restored control over a small airport in eastern Ukraine that had been occupied by pro-Russian militiamen.

Concerns about China also weighed as data showed a tightening of credit growth. Money supply growth was up just 12.1 per cent year over year in March, the slowest pace in 17 years.

And that slowing in credit growth raised fresh worries about economic growth in the world's second-biggest economy. There are worries that gross domestic product growth may fall below seven per cent in the current year, a full 0.5 of a percentage point below the government's target. Official growth figures for China will be released Wednesday.

"Clearly the growth is slowing, officially guiding at 7.5 per cent, but the leadership has said the growth will not come at the expense of reform," said John Stephenson, portfolio manager at First Asset Funds.

"So, to the extent that reform does occur, and it's badly needed, that would be a good thing. So, China is making the right moves, but so much is predicated on them getting things exactly right."

Markets found some buoyancy from well-received earnings reports.

Coca-Cola beat expectations as the beverage giant said adjusted per-share earnings fell to 44 cents while net operating revenues fell to $10. …

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