Michael Culhane has resigned as financial chief of Hudson’s Bay after taking a leave of absence.
The Toronto stock market registered a small gain Friday morning with markets in a generally risk averse mood as the European Union levied another round of sanctions on Russia for its involvement in Ukraine. Investors also awaited next week's U.S. Federal Reserve meeting on interest rates and a referendum that will decide whether Scotland leaves the United Kingdom.
The S&P/TSX composite index inched forward 14.82 points to 15,549.14.
The Canadian dollar was at a fresh five-month low, down 0.2 of a cent to 90.32 cents (U.S.). Economic growth worries and the timing of the next U.S. rate increase have pushed the loonie down more than 1 1/2 U.S. cents this week.
U.S. indexes were in the red, amid data showing August retail sales rose 0.6 per cent from July, led by a strong showing in the auto sector. The gain was in line with economists' expectations.
The Dow Jones industrials dropped 46.82 points to 17,002.18, the Nasdaq shed 13.65 points to 4,578.16 and the S&P 500 index slipped 5.83 points to 1,991.62.
The latest reading on consumer confidence from the University of Michigan comes out later in the morning.
Investors also took in earnings from Canada's oldest retailer. Hudson's Bay Co. posted a second-quarter loss of $36-million (Canadian), or 23 cents per diluted share, from continuing operations. That compares with a loss of $66-million, or a loss of 55 cents per diluted share, a year ago. Retail sales were $1.76-billion, an increase of $821-million, or 86.6 per cent, from $948-million for the previous year, primarily due to the inclusion of U.S. luxury retailer Saks Inc. HBC shares slipped 19 cents to $17.48.
Overseas, the European Union announced sanctions against Russia that will toughen financial penalties on the country's banks, arms manufacturers and its biggest oil company, Rosneft. The United States was also expected to announce more sanctions Friday. Analysts point out that there will be a price for imposing sanctions, which would weigh on the European economy that's still struggling to avoid slipping back into recession.
At the same time, anticipation is building that the Federal Reserve is closer to winding down its economic stimulus and raising interest rates. Markets generally expect the central bank to move on interest rates sometime around the middle of next year, but analysts will be scanning the Fed announcement for indications that it could move even earlier in 2015.
Also, there has been heightened concern about the Scottish referendum slated for Sept. 18, particularly after polls released showed the results too close to call.
The TSX energy sector was down 0.6 per cent while oil prices declined. The October crude contract in New York was down 14 cents to $92.69 (U.S.) a barrel after hitting a 16-month low during Thursday's session close to the $90-mark. Prices have been buffeted by a combination of lower demand and higher U.S. production.
The gold sector declined 0.8 per cent while December bullion faded $4.70 to $1,234.30 an ounce.
The base metals sector was the leading advancer, up 0.2 per cent while December copper was unchanged at $3.09 a pound.