The Toronto Stock Exchange lost ground at midday Wednesday after a weaker report on U.S. home sales fell short of expectations, overshadowing modestly higher commodity prices.
The S&P/TSX composite index shed 24.6 points to 12,406. But the junior TSX Venture Exchange added 5.6 points to 1,576.3.
About half of the sectors on the main index were in the red, with energy, mining and financial sectors weighing on the index.
The Canadian dollar reversed earlier gains to shed 0.09 of a cent to 100.74 cents US after losing nearly half a cent Tuesday.
Traders reacted to some mildly disappointing news on U.S. home sales, an important gauge for Canadian resource, construction and manufacturing companies that have ties to the housing market south of the border.
The U.S. National Association of Realtors said home sales fell 0.9 per cent last month to a seasonally adjusted annual rate of 4.59 million. Economists had expected a February gain of 0.9 per cent.
The lower sales followed a revised 4.63 million in January, which marked the highest level since May 2010.
Still, the last three months have been the best U.S. winter home sales in five years. The progress is encouraging ahead of the spring buying season, although sales remain below the six million that economists equate with healthy markets.
"Existing home sales fell slightly this month, but only relative to January's revised figure, which was significantly stronger than initially reported. Sales are still trending at their highest level since spring 2010, when they were artificially buoyed by a tax credit," said Chris Jones, an economist at TD Bank.
"The economic environment is ripe for home sales to keep gaining pace."
Wall Street moved mostly lower after the release, with the Dow Jones industrial average down 50.71 points to 13,119.5, and the broader S&P 500 index shedding 3.9 points to 1,401.6.
The Nasdaq composite rose 0.54 of a point to 3,074.7 after a positive earnings report from business software maker Oracle after market close Tuesday.
Both the TSX and Wall Street closed lower Tuesday as commodity prices slumped amid signs that China's booming economy could be slowing.
Gold added $3.40 to US$1,650.40 an ounce, while copper moved up one cent to US$3.84 a pound. On the TSX, shares in Barrick Gold Corp. (TSX:ABX) added 13 cents to C$43.34, while shares in base metals miner Teck Resources (TSX:TCK.B) were down 61 cents to C$35.13.
The May crude oil contract was up 27 cents at US$106.34 a barrel. Still the energy sector on the TSX moved lower, with shares in Canadian Natural Resources (TSXL:CNQ) down one cent to C$34.83.
Saudi Arabia, the world's largest crude producer, said Tuesday that it can quickly boost output by 25 per cent if there is a sudden disruption in global supplies. Crude has jumped from $75 in October as traders worry that a military conflict over Iran's nuclear program could interrupt oil supplies.
In Canadian data, Statistics Canada said its composite leading index, which offers a snapshot of the health of the economy, rose 0.6 per cent in February, after rising 0.4 per cent in January.
It was the eighth consecutive monthly increase in the index, with six of its 10 components rising.
On the corporate front, Montreal-based Miranda Technologies Inc. (TSX:MT) is talking with a number of unnamed strategic partners about ways to enhance the company's value, while making a change on its board. Shares jumped 12 per cent or $1.27 to $11.91.
SNC-Lavalin (TSX:SNC) said it has signed $133-million project management contract with Petroleos de Venezuela S.A. for the Delta Caribe oriental project. Shares added four cents to $38.96.
In a research report Wednesday, Goldman Sachs analysts urged investors to dump bonds and put money into stocks. The report argues that the weak economic growth in the United States and Europe is not universal, and that the 2010s could be the strongest period for world growth between 1980 and 2050.
European markets were little changed after a sell-off Tuesday as worries fade about the debt crisis, at least for now. Britain's FTSE 100 added 0.1 per cent. Germany's DAX was down 0.2 per cent and France's CAC-40 fell 0.5 per cent.
Early Wednesday, Greek lawmakers approved the country's international bailout deal, which will see Greece receive 172 billion euro (US$227 billion) in rescue loans over the next few years. The amount includes a second, 130-billion euro (US$172-billion) package as well as the undisbursed portion of a first, 110-billion euro ($145-billion) bailout and funds from the IMF.
Asian markets appeared to remain shaken by news China's growth could be slowing. The Nikkei 225 index in Japan, which counts China as its most important trading partner, fell 0.6 per cent to 10,086.49.
South Korea's Kospi index dropped 0.7 per cent to 2,027.23. Hong Kong's Hang Seng shed 0.2 per cent to 20,856.63 after failing to hold morning gains. Benchmarks in mainland China were mostly flat, while Thailand and Indonesia rose. Markets in the Philippines and New Zealand fell.