Canadian stocks snapped a four-day winning streak to close lower Monday, as eurozone debt worries resurfaced after the European Central Bank dispelled speculations on its bond buying plans.
Earlier, Germany's central bank reiterated opposition to the European Central Bank plan to purchase government bonds. Bundesbank in its monthly report said the decision to share solvency risks should be taken by governments and not by central banks. The comments came after a German magazine reported that the European Central Bank may be planning to cap yields. The news sent European shares up, while Spanish and Italian 10-year bond yields declined notably today.
The S&P/TSX Composite Index closed Monday at 12,076.03, down 13.86 points or 0.11 percent. The Index touched an intraday high of 12,100.04 and a low of 12,034.23.
Meanwhile, Greek Prime Minister Antonis Samaras is expected to meet some of the leaders of the euro currency bloc this week to request an extension of its fiscal consolidation program, reports said over the weekend. Samaras will be visiting Luxembourg Prime Minister Jean-Claude Juncker, who heads the group of euro-area finance ministers, by the middle of this week. He will also meet with German Chancellor Angela Merkel and French President Francois Hollande this week. Samaras is expected to put forward a request for a two-year extension for the country's fiscal adjustment program.
The Metals & Mining Index dropped 0.73 percent, with Teck Resources Limited (TCK.B.TO) slipping 0.20 percent, First Quantum Minerals Ltd. (FM.TO) down 2.12 percent, and Inmet Mining Corporation (IMN.TO) down 0.87 percent. Osisko Mining Corp. (OSK.TO) moved up 0.54 percent.
The Global Gold Index edged up 0.32 percent, with gold futures for December delivery gaining $3.6 or 0.2 percent to close at $1,623.00 an ounce Monday on the NYMEX. The Capped Materials Index gained a modest 0.15 percent.
Among other gold stocks, Barrick Gold (ABX.TO) was gained 1.15 percent, Yamana Gold Inc. (YRI.TO) up 0.07 percent, Eldorado Gold Corp. (ELD.TO) up 0.43 percent, and Kinross Gold (K.TO) up 0.97 percent.
The Energy Index shed 0.27 percent with U.S. crude oil futures for September delivery down $0.04 to close at $95.9701 a barrel Monday on the NYMEX.
Among energy stocks, Canadian Natural Resources Limited (CNQ.TO) moved up 0.41 percent, Penn West Petroleum Ltd. (PWT.TO) gained 1.31 percent, Suncor Energy Inc. (SU.TO) shed 0.71 percent, and Encana Corp. (ECA.TO) down 0.05 percent.
The Financial Index gained 0.39 percent with Royal Bank of Canada (RY.TO) down 0.87 percent, Bank of Nova Scotia (BNS.TO) down 0.15 percent, and Toronto-Dominion Bank (TD.TO) shed 0.64 percent. Manulife Financial Corp. (MFC.TO) dropped 1.76 percent.
Among heavyweights, fertilizer maker Potash Corporation of Saskatchewan Inc. (POT.TO) dropped 1.01 percent, transportation systems maker Bombardier Inc. (BBD.A.TO, BBD.B.TO) edged down 0.27 percent. Smartphone maker Research In Motion (RIM.TO) slipped 1.76 percent.
Oilfields services company Pure Energy Services Ltd. (PSV.TO) jumped nearly 40 percent after announcing it would be acquired by FMC Technologies Inc. (FTI) for C$11.00 per share in cash, or nearly C$282 million or $285 million.
Television and film productions company DHX Media Ltd. (DHX.TO) surged 23.68 percent after announcing it would acquire the business of Cookie Jar Entertainment for about $111 million, to be paid through a combination of approximately 36 million DHX shares, $5 million in cash, and the assumption of $66 million of debt.
In economic news, eurozone construction output declined for the third consecutive month in June, Eurostat reported. In the construction sector, seasonally adjusted production dropped 0.5 percent from a month ago, when it fell 0.2 percent. Building construction was down 0.1 percent after staying flat in May. Likewise, civil engineering fell by 0.7 percent compared to a 0.5 percent rise in the prior month
During the week, investor focus will be on the weekly jobless claims report, the Commerce Department's durable goods orders report for July and the minutes of the latest FOMC minutes, apart from a trio of housing reports on new home sales, existing home sales and house prices, which have the potential to move the markets.
Focus will also be on the crude oil inventories data from the API due Tuesday and the Energy Information Administration weekly report due Wednesday.
by RTT Staff Writer
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