Canadian stocks were lingering deep in the red Monday morning as commodities moved down amid renewed worries over the euro zone debt situation after Spanish 10-year bond yields surged to new highs, surpassing the 7 percent-mark.
The S&P/TSX Composite Index dived 151.18 points or 1.30 percent to 11,471.73, a day after snapping its five-session winning streak.
The Diversified Materials Index was the major loser, dipping nearly 4 percent. First Quantum Minerals (FM.TO), Inmet Mining (IMN.TO) and Teck Resources (TCK_B.TO) were down around 4 percent each.
The price of crude oil was paring recent gains Monday morning after China's central bank hinted that its economy will continue to decline over the third quarter of this year. Last week, oil settled sharply higher on geopolitical issues as traders viewed the tension build-up in the Middle East between Iran and Israel, and in Syria, could possibly disrupt oil supplies from the region. Oil prices were also supported by a weakening dollar and lower U.S. crude stockpiles. Crude for September delivery lost $2.98 to $88.85 a barrel.
In the oil patch, Baytex Energy Corp. (BTE.TO), Imperial Oil (IMO.TO) and Canadian Natural Resources (CNQ.TO) were down over 3 percent each
The price of gold was moving lower Monday morning amid worries over the euro zone financial situation after Spanish 10-year bond yields surged to new euro area highs. Gold for August was down $7.30 to $1,575.50 an ounce.
Among gold plays, Barrick Gold (ABX.TO) lost 2 percent, while Goldcorp. (G.TO) and Agnico-Eagle Mines (AEM.TO) were slipping around 1 percent each.
Building construction company Churchill Corp. (CUQ.TO) dived nearly 30 percent after reporting preliminary revenue estimates for 2012 second quarter between C$292 million and C$298 million.
Meanwhile, Nexen Inc. (NXY.TO) skyrocketed over 50 percent to C$26.53. Chinese oil major CNOOC Ltd. (CEO) said it would acquire Nexen Inc. for $27.50 per share in cash.
Upstream oil and gas company Talisman Energy (TLM.TO) soared over 6 percent after it said it would divest a 49 percent equity interest in Talisman's UK North Sea business, Talisman Energy (UK) Ltd. to Sinopec International Petroleum Exploration and Production Corp. for $1.5 billion.
by RTT Staff Writer
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