Canadian stocks ended lower for a third straight day Monday, led by mining issues amid concerns of global economic growth with continued focus on the eurozone financial crisis. Investors continued to fret over some of the recent soft economic data from around the globe, rekindling economic recovery concerns.
Bank of Canada's Business Outlook Survey for the summer showed businesses with an overall positive outlook for investment and employment, but continue to be apprehensive of global uncertainties.
Toronto's main index, the S&P/TSX, closed Monday at 11,634.67, down 25.29 points or 0.22 percent. The S&P/TSX Composite Index touched an intraday high of 11,692.45 and a low of 11,565.04.
The TSX Venture Index closed at 1,211.98, up 0.63 points or 0.05 percent. The index opened at 1,210.95 compared to its previous close of 1,211.35.
Major components of the S&P/TSX Index in the red were the Metals & Minerals and Energy indices. The Information Technology Index shed 1.32 percent.
The Metals & Mining Index was down 2.17 percent with Teck Resources Limited (TCK.B.TO) shedding 2.63 percent, First Quantum Minerals Ltd. (FM.TO) down 2.79 percent, and Lundin Mining Corp. (LUN.TO) down 2.30 percent.
Gold futures for August delivery gained $10.20 or 0.7 percent to close at $1,589.10 an ounce Monday on the NYMEX. However, the Global Gold Index edged down 0.26 percent.
Among gold stocks, Barrick Gold Corp. (ABX.TO) surrendered 0.51 percent, while Kinross Gold Corp. (K.TO) gained 0.48 percent. Goldcorp Inc. (G.TO) slipped 0.26 percent.
The Materials Index slipped 0.59 percent, with heavyweight Potash Corporation of Saskatchewan Inc. (POT.TO) edging down 0.24 percent.
U.S. crude oil futures for August delivery, gained $1.54 or 1.8 percent to close at $85.99 a barrel Monday on the NYMEX.
The Energy Index slipped 0.59 percent with Suncor Energy Inc. (SU.TO) down 0.68 percent and Canadian Natural Resources Limited (CNQ.TO) down 0.98 percent. Bankers Petroleum Ltd. (BNK.TO) lost 3.08 percent.
The Financial Index was up 0.03 percent with Royal Bank of Canada (RY.TO) down 0.38 percent, Bank of Nova Scotia (BNS.TO) was up 0.25 percent, and Toronto-Dominion Bank (TD.TO) up 0.14 percent. Manulife Financial Corp. (MFC.TO) gained 1.38 percent.
Heavyweight transportation systems maker Bombardier Inc. (BBD.B.TO) edged down 0.25 percent. The company said its Aerospace unit was awarded orders for five CS100 and 10 CS300 jetliners valued at $1.02 billion.
Blackberry maker Research In Motion Limited (RIM.TO) was down sharply by 5.11 percent.
Thomson Reuters Corp. (TRI.TO) slipped 0.14 percent after indicating it would acquire electronic foreign exchange platform FX Alliance Inc. (FX), or FXall, for $22 per share in cash.
In economic news from the eurozone, Germany's exports rose more than expected in May, data from the Federal Statistical Office showed. Exports grew 3.9 percent month-on-month in May, following a 1.7 percent decline in April. Economists expected only a 0.2 percent rise in shipments.
Spanish and Italian 10-year bond yields rose on Monday, while Germany's cost of borrowing declined, as investors fled to safe havens ahead of a summit of Eurozone finance ministers later in the day. Surging borrowing costs indicate markets remain doubtful over the prospects of the currency bloc even after EU leaders struck a crucial deal last week. The European Central Bank's move to cut interest rate to a record low did little to improve market sentiment.
There was some soft inflation data out of China raised speculation of further monetary easing measures in the commodity hungry nation. China's inflation fell to a 29-month low in June, with the consumer prices rising 2.2 percent year-over-year, down from 3 percent reported in May.
by RTT Staff Writer
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