Gold, Markets, Resource News

rI at the close, May 4, 2012

By Resource Intelligence · May 4, 2012 · 3:32 pm · Leave a Comment

Canada’s TSX exchange sneezed away the entirety of its 2012 gains on Friday, helped along by rough employment numbers out of the US Department of Labour and nagging uncertainty over Europe’s competence in handling its economic affairs.

On Friday the S&P / TSX composite index closed at 11,871.23, shedding 143.66 points, or 1.20%. Eight of the 10 sub-indexes declined, led by energy, which lost 2.25% as the price of crude oil fell $4.05 US to $98.49 US a barrel.

View the full GSPTSE chart at Wikinvest

Gold picked up $10.40 US on the negative market sentiment, most recently trading at $1,645.20 US an ounce.

Equity markets not just in the US and Canada but throughout Europe as well, have struggled this week in the face of a cooling US jobs market. The percentage of unemployed Americans now stands at 8.1%, which is actually a decrease—if only because many have given up looking for work.

In the EU, the unemployment rate stands at a whopping 10.9%, the highest in about 15 years and shows no signs of abating.

The Financial Post put the TSX’s performance succinctly into context today: “After roaring like a lion into 2012, the economic data have spent the spring acting more like a lamb, taking some steam out of the equity market rally. Meantime, the TSX was up to its old tricks, underperforming with a three per cent decline this week, as all 10 major sectors were in the red. Canadian stocks are now down 0.7 per cent in 2012, the worst performing index on the global major market leaderboard — worse than France, which will see political drama play out this weekend; and the U.K., which has stumbled into a double-dip recession.”

Uncertainty seems almost guaranteed into the coming months with key elections in France, Greece and—later in the year—in the US that could significantly sway policy to the left or right. Perhaps that’s the term that will end up defining 2012: The Year of Uncertainty. Although the year seemed to start with a gust of promise, that has long fizzled with economic growth faltering again and resource stocks suffering as a consequence.