Canadian stocks dived to a one-month low Monday morning as traders turned cautious ahead of a European Union summit this week where Greek leaders will attempt to renegotiate some terms of the country's international bailout. Weak energy prices also weighed on the resource-heavy main index.
The S&P/TSX Composite Index lost 102.05 points or 0.89 percent to 11,333.49, a day after snapping its two-session losing streak.
The Diversified Materials Index was the major loser, dipping over 2 percent, with Inmet Mining (IMN.TO) and First Quantum Minerals (FM.TO) diving over 3 percent each. Teck Resources (TCK_B.TO) lost over 2 percent.
The price of crude oil the price of crude oil moved lower as Tropical Storm Debby changed its course leaving the oil producing states of Louisiana and Texas unscathed Crude for July shed $1.30 to $78.46 a barrel.
In the oil patch, Paramount Resources (POU.TO) lost close to 5 percent. Encana Corp. (ECA.TO) and Baytex Energy Corp. (BTE.TO) surrendered about 4 percent each.
Energy company Lundin Petroleum AB (LUP.TO) shed over 1 percent after it said it secured a fully committed 7-year senior secured revolving credit facility of $2.5 billion, in order to adjust to its financing needs.
Among financial plays, National Bank (NA.TO) and Royal Bank (RY.TO) slipped over 1 percent each.
Research In Motion Ltd. (RIM.TO) lost close to 6 percent amid reports that the smartphone maker is planning to split its business into two by separating its handset division from its messaging network, and spinning off the handset division to Amazon, Inc. (AMZN) or Facebook, Inc. (FB).
Meanwhile, gold stocks were marginally higher tracking steady bullion prices. The price of gold was ticking higher Monday morning as the U.S. dollar was steady ahead of this week's economic data. Gold for August edged up $6.70 to $1,573.60 an ounce.
Seabridge Gold (SEA.TO), Royal Gold (RGL.TO), Goldcorp. (G.TO) and Agnico-Eagle Mines (AEM.TO) were up around 2 percent each. Centerra Gold (CG.TO) gained nearly 4 percent.
In economic news from south of the border, the U.S. Commerce Department put the sales of new single-family homes in May at a seasonally adjusted annual rate of 369,000, a 7.6 percent increase from April levels. That puts sales of new homes at their strongest rate since April of 2010. Most economists had expected April's 3.3 percent rebound in new home sales to be followed by continued growth, but the market consensus had predicted a lower rate of 350,000.
by RTT Staff Writer
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