Credit Herald

Higher oil prices propelled the Toronto stock market's main index briefly past the 15,000-point level for the first time Tuesday morning, but the market quickly moved into negative ground, partly because of uncertainty over the sale of BCE Inc.

New York markets were firmly lower after core inflation at the wholesale level during April came in much higher than expected.

Toronto's S&P/TSX composite index was off 39.11 points to 14,945.09 – after hitting 15,008 in the early minutes – following a three per cent rise last week generated by rising commodity and financial stocks.

The TSX is up about 23 per cent from the recent low hit Jan. 21.

Shares in BCE Inc. (TSX: BCE) were down $1.78 or 4.7 per cent to $37.04 as the Ontario Teachers' Pension Plan, which is leading the proposed $52 million takeover of the company, insisted the deal is on track. The offer price is $42.75 a share, but the New York Times has reported that banks behind the deal are pressing to amend the terms.

The TSX Venture Exchange advanced 37.08 points to 2,648.4 while the Canadian dollar moved up 0.80 cent to 100.82 cents US.

New York's Dow Jones industrials moved down 118.06 points to 12,910.1.

The Nasdaq composite index fell 15.64 points to 2,500.45 while the S&P 500 index gave back 8.91 to 1,417.72 after the Labour Department reported that wholesale inflation increased by 0.2 per cent in April – a moderate pace largely attributable to the agency's seasonal adjustments. Excluding food and energy, prices rose 0.4 per cent in April – double what economists had expected.

As rising prices for fuel, food and utilities hit companies and consumers, the biggest home-renovation retailer in North America reported a 66 per cent drop in first-quarter profit to US$356 million. Home Depot Inc. posted a big one-time charge on store closures and truncated growth plans, and said sales at stores open a year or more slumped 6.5 per cent.

The TSX energy sector climbed 1.65 per cent as oil prices continued to surge $1500 payday loan. The June crude contract in New York ran ahead $1.33 to US$128.38 on news that OPEC will not increase its output before September.

EnCana Corp. (TSX: ECA) moved up 97 cents to $95.17.

The TSX financial sector was down one per cent with CIBC losing $1.36 to $73.76.

Two market heavyweights were dragging the TSX lower. Research In Motion Ltd. (TSX: RIM) fell $4.95 to $135.38 while Potash Corp. lost $10.66 to $196.63.

A joint venture between Canadian Superior Energy Inc. (TSX: SNG) of Calgary and privately held Global LNG Inc. of New York launched a plan Tuesday for a US$550-million liquefied natural gas import terminal 24 kilometres off New Jersey. Subject to regulatory approval, the Excalibur project is designed to begin delivering 2.4 billion cubic feet per day of gas by late 2011. Canadian Superior shares were up 25 cents to $4.26.

On overseas stock markets, Chinese indexes fell as traders sold drugmakers to cash in on recent gains following last week's earthquake.

The Shanghai composite fell 161.60 points to 3,443.22, while the Shenzhen index tumbled 5.6 per cent to 1,057.88.

Hong Kong's key index fell 2.2 per cent on worries over high oil prices and weakness in mainland markets. The Hang Seng closed down 572.77 points at 25,169.46.

In its Hong Kong debut, Asia Cement jumped 38 per cent, boosted by earthquake reconstruction demand.

Tokyo's Nikkei index declined 0.8 per cent, losing, 109.52 points to 14,160.09 as Japan's central bank kept interest rates steady amid worries about a global slowdown.

London's FTSE 100 index was down 119.5 points to 6,257, while the German DAX declined 94.09 and the Paris CAC-40 lost 81.41 points to 5,060.69.

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