Canadian dollar and price of oil relatively flat following recent gains

Energy stocks may again lead the way Thursday. Declines were widespread as lower sales were reported in 10 of 11 sub-sectors, representing 97% of retail trade.

The Toronto Stock Exchange’s S&P/TSX index was down 16.55 points or 0.13 per cent at 12,850.61 almost two hours after the opening bell.

Canadian Tire Corp was one of the most influential movers on the index, advancing 7.8 percent to C$125.63 after its earnings beat expectations despite a slip in revenue. The US consumer price index was flat last month, the government said Friday.

The agency reported that later snowfalls and unseasonably warm weather in many parts of Canada may have contributed to lower seasonal purchases.

Crude prices, which have moved in lockstep with the stock market for much of the year, dropped about 3 per cent after a record increase in USA stockpiles.

The Dow Jones industrial average was down 30.68 points or 0.19 point at 16,423.15.

“The direction and sentiment in the oil pits has a pretty tight correlation with what’s happening in equity markets”, said Michael James, managing director of equity trading at Wedbush Securities Inc.in Los Angeles.

Miners continued to recover, putting a cap on today’s retreat.

The group now projects economic growth of just 1.4% in Canada this year, down from an earlier prediction of 2% growth.

Investors are scrutinizing economic data for any signs that slower growth overseas, particularly in China, is spreading.

Oil futures dropped $1.24 to $29.53 United States a barrel, reversing the rally of the past few days.

But while Iranian Oil Minister Bijan Zanganeh welcomed the plan, he fell short of committing to it and Iranian sources told Reuters that capping output is not enough to rebalance the market.

By Friday closing, TSX energy stocks listed lower by 1.67 percent, including Encana Corporation, which lost 10.93 percent to 4.32 Canadian dollars a share, and Canadian Natural Resources, which fell 3.50 percent to 28.09 Canadian dollars a share.