Weekend markets: Canada rises as world trends downward

Canadian stocks gained for the first time in three days, bouncing back from Wall Street’s 223-point drop in the Dow on Thursday and breaking with the downward trend on other world markets that were open.

Trading was subdued as US markets were closed on Friday for the Independence Day holiday observance.

Stocks fell in Europe and Asia, extending the MSCI World Index’s longest weekly losing streak since March. The MSCI World lost 0.1% to 946.80 as 12 stocks fell for every seven that rose. The gauge of 1654 companies in 23 developed nations slipped 1.8% this week.

Developing countries’ share of worldwide equity value climbed to a record as the fastest- growing economies lured investors amid the first global recession since World War II.

The 22 nations classified as “emerging” by index provider MSCI comprised 24% of world market capitalisation, up from 18% at the start of this year, the highest proportion since Bloomberg began compiling the data in 2003.

Teck Resources, Canada’s largest diversified mining company, jumped 8.1% after selling a 17% stake to China Investment Corp. for $C1.74 billion to cut debt. Potash Corporation of Saskatchewan rose for a second day after a Russian potash producer increased prices.

The S&P/TSX Composite Index added 37.19 points, or 0.4%, to 10,283.10, trimming its weekly decline to 1%. Since rising to an eight-month high on June 11, the S&P/TSX has lost 4%.

European shares fell slightly session, with utilities and metals producers pressuring markets.

The pan-European Dow Jones Stoxx 600 index edged 0.02% lower to 204.08. The index finished unmoved for the week although that number masks a volatile ride for investors. The measure has slipped 5% since June 11.

New economic data showed the second straight month of expansion for the UK services sector in June, while euro-zone retail sales fell 0.4% in May.

On a regional basis, most markets were steady. The U.K. FTSE 100 index edged 0.1% higher to 4236.28; the French CAC-40 index rose 0.1% to 3119.51; and the German DAX index slipped 0.2% to 4708.21.

Commodities: Oil, gold down

Crude oil futures in New York fell below $US66 a barrel, a 10% decline from this year’s high.

Crude oil made its third weekly drop after US unemployment rose to the highest in almost 26 years. Prices may drop again next week on speculation that US fuel inventories will climb as the weak economy curbs demand.

Crude oil for August delivery fell $US1.10, or 1.7%, to $US65.63 a barrel in New York.

Gold was little changed in London and US trading was limited. Bullion for immediate delivery gained $US2.39, or 0.3%, to $US932.18 an ounce in London.

August gold futures added 0.1% to $US932 an ounce in New York.

Currencies: Dollar gains, pound falls

The dollar posted a weekly gain against the euro as speculation the economic recovery is faltering boosted demand for the safety of the US currency.

The Dollar Index, which tracks the currency against those of six major US trading partners, advanced for a second day.

The pound fell against the dollar, declining for the first week in a month, after a report showed the UK’s service industries were little changed in June.

The dollar traded at $US1.3978 per euro for a 0.5% gain this week. It reached $US1.3929 earlier, the strongest level since June 25.

The yen was at ¥134.10 per euro and at ¥95.94 for the dollar.

The pound was at $US1.6326, down 1.2% in the past week. The UK currency was at ¥156.64, after reaching the weakest level since June 25.