Canada's resource-heavy main stock index lost some of its mojo on Monday, hurt partly by a drop in commodity prices after weak trade data from China.
The S&P/TSX Composite Index slipped 69.26 points to begin the session at 12,434,36
The Canadian dollar shed 0.26 cents to 100.66 cents U.S.
In Canada, on a day light on economic news, investors will be keeping a close eye on Viterra Inc. after the Sunday Telegraph reported that Glencore PLC is behind a $5.5-billion offer for the Canadian grain handler. On Friday, Viterra said that it had received "expressions of interest" in the company, which sent the shares up more than 20%
Other stocks to watch this morning include Air Canada. The federal government is preparing back-to-work legislation for the airline so that it can respond quickly if there is any work stoppage at the airline, the government said on Friday.
Pulp producer Mercer International Inc. said the Court of Québec has reversed a cease trade order against a private placement of special warrants by Fibrek Inc to Mercer.
Canadian commodity producers weighed on the TSX. Suncor Energy Inc. fell 1.2% and Barrick Gold Corp. fell 0.5%, reflecting declines in the price of crude oil and gold.
ON BAYSTREET
The TSX Venture Exchange stepped back 8.58 points to 1,641.23, while the Nasdaq Canada index tripped 3.79 points to 412.83
Nine of the 14 Toronto subgroups began the day lower. Metals and mining backpedaled 1.7%, while energy stocks faltered 1.3% and materials gave back 1.1%.
The five gainers were led by consumer discretionaries, up 0.4%, real-estate stocks, up 0.2%, consumer staples, inching up 0.1%.
ON WALLSTREET
In New York, stocks opened essentially unchanged Monday, a sign that investors may stay on the sidelines ahead of Tuesday's Fed meeting, with little on the economic docket.
The Dow Jones Industrials inched ahead 8.67 points to start the week at 12,930.70
The S&P 500 stumbled 1.27 points to 1,369.60, while the Nasdaq weakened 10.24 points to 2,978.10
Bank of America shares slid in early trading. On Friday, the bank said it would significantly slash mortgage balances for as many as 200,000 borrowers, as part of the $26-billion U.S. settlement reached between the five major mortgage servicers.
Youku and Tudou -- often called the YouTubes of China -- announced a merger Monday that sent Tudou shares up by a whopping 127%. The new venture will be called Youku Tudou Inc.
Carnival shares edged higher. The cruise line posted a quarterly loss on Friday, but said bookings were up.
Shares of PepsiCo rose after the company announced Brian Cornell has rejoined the company as CEO of PepsiCo Americas Foods and John Compton will become president of PepsiCo.
Clothing retailer Urban Outfitters will report its quarterly results after the closing bell.
Analysts surveyed by Thomson Reuters expect the company to post earnings of 29 cents a share on $741 million U.S. in revenue.
Economically speaking, the February Treasury Budget report is expected to show a deficit of $229 billion U.S., according to a survey of analysts by Briefing.com, up from $222.5 billion U.S. in February 2011.
The national average price for a gallon of gasoline rose above the $3.80 U.S. mark Monday, resuming the advance that has plagued drivers throughout the winter.
The average price rose nine-10ths of a cent, according to the survey of gas stations conducted for the motorist group AAA. It was the third straight advance, with prices gaining 3.4 cents a gallon over Saturday and Sunday.
Treasury prices for the 10-year note picked up territory, lowering yields to 2.01% from Friday’s 2.04%. Treasury prices and yields move in opposite directions.
Oil for February delivery slid $1.68 to $105.72 U.S. a barrel.
Gold futures for April delivery fell $9.40 to $1,702.02 U.S. an ounce.
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