TORonTO – The Canadian dollar was slightly lower Thursday after running up nearly a full cent a day earlier.
The loonie was down 0.09 of a cent to 102.16 cents US on Thursday, amid little domestic corporate news and lower prices for oil and other commodities.
The latest Chinese data indicated the slowdown in the worlds second-biggest economy is bottoming out and financially troubled Spain conducted a successful bond auction as European unio leaders hold a two-day meeting.
Traders digested data showing that Chinas economy grew 7.4 per cent from the year before in the three months ending in September, which was in line with economists expectations. That was slower than the second quarters 7.6 per cent growth but economists also pointed to quarter-on-quarter growth of 2.2 per cent, the biggest such gain in a year.
While indicating that the worlds second-biggest economy is recovering, analysts said the showing also indicated that there is no need for the government in Beijing to inject further stimulus.
Commodity prices failed to find lift from data as the November crude contract on the New York Mercantile Exchange declined 39 cents to US$91.73 a barrel.
December copper was off a penny at US$3.74 a pound following a five-cent run-up Wednesday while December bullion pulled back $12.50 to US$1,740.50 an ounce.
Meanwhile, an EU summit starting later Thursday will see leaders will debate tightening financial integration, creating a banking unio and how to deal with the financial needs of Greece and Spain.
Ahead of the meeting, German Chancellor Angela Merkel endorsed a proposal for a top European unio official to be given the power to veto member governments budgets in a bid to keep European countries from overspending again in the future,
However, long-term proposals for overhauling the EU appear likely to play a leading role at this weeks summit, with firm decisions not expected on more immediate matters.
The eurozone financial crisis has focused on Spain in recent months. There are growing expectations the country, suffering heavily from the after effects of a building boom that went bust, will soon make a request for international help to deal with its finances.
Amid that expectation, Spain on Thursday raised C4.6 billion at a sharply lower cost. The Treasury sold C1.51 billion in 10-year bonds at an average interest rate of 5.46 per cent, down from 5.66 per cent in the last such auction Sept. 20.
Spain says it will soon decide whether to look to tap a European Central Bank bond-buying program largely designed to keep a lid on its borrowing costs.
