Markets lower as data disappoints

The Toronto stock market closed lower Thursday as traders speculated about whether the U.S. Federal Reserve thinks economic conditions will warrant another round of stimulus.

Traders also took in data showing the fragility of the global economic recovery. The S&P/TSX composite index declined 56.48 points to 12,062.51 and the TSX Venture Exchange rose 2.42 points to 1,248.08.

The Canadian dollar was down 0.23 of a cent to 100.64 cents (U.S.).

New York’s Dow Jones industrials declined 115.3 points t o 13,057.46. The Nasdaq composite index dropped 20.27 points to 3,053.4 and the S&P 500 index was off 11.41 points at 1,402.08.

Minutes from the Fed’s Aug. 1 meeting showed many members of the committee that decides interest rate policy felt further support would be needed “fairly soon” unless the American economy improved significantly.

Markets failed to find lift from other data showing further signs of a steady recovery in the U.S. housing market. The Commerce Department reported that sales of new homes in the U.S. rose 3.6 per cent in July to match a two-year high reached in May to a seasonally-adjusted annual rate of 372,000. Commodity prices had headed higher in the wake of the Fed announcement, but the energy sector lost1.29 per cent as the October crude contract on the New York Mercantile Exchange shed early gains to move down 99 cents to $96.27 a barrel.