Toronto’s main stock index opened slightly higher, as initial excitement over a victory for Greece's pro-bailout parties faded and the focus returned to investor worries about the rising cost of borrowing in Spain and Italy
The S&P/TSX Composite Index gained 10.64 points to begin the week at 11,535.54
The Canadian dollar was down 0.54 of a cent to 97.42 cents U.S.
Among stocks to watch this morning, Bank of Nova Scotia will record a $600-million after-tax gain in its fiscal third quarter from the sale of its Scotia Plaza office complex in Toronto
Swiss commodities trader Glencore International Plc said on Friday it has agreed to an extension of the Canadian government's review of its proposed takeover of grain handler Viterra Inc.
The scope of a planned environmental review of the Keystone XL oil pipeline from Canada could go beyond a small disputed portion in Nebraska and threatens to delay TransCanada Corp.’s project further.
Air Canada won a long-running contract dispute with its mechanics and baggage handlers on Sunday, after an arbitrator opted to enforce its final offer over one put forward by the union.
On the economic front this morning, Statistics Canada told us that offshore investors acquired $10.2 billion of Canadian securities in April, after a bit of a selloff the month before. Canadian investors' holdings of foreign securities went down by $2.7 billion, predominantly in bonds.
ON BAYSTREET
The TSX Venture Exchange picked up 2.86 points to 1,253.88. The Nasdaq Canada index faded 2.51 points to 368.44
Eight of the 14 Toronto subgroups were lower at the outset. Energy stocks dumped 0.8%, information technology was off 0.5%, and gold slid 0.3%.
The half-dozen gainers were led by real-estate, up 0.3%, while industrial and metals and mining stocks each grew 0.2%.
ON WALLSTREET
U.S. investors watched Europe's continued troubles Monday, as an election in Greece was unable to provide a sustained lift for markets overseas.
The Dow Jones Industrials shed 48.70 points to start Monday’s trading at 12,718.47
The S&P 500 was 4.29 points down, at 1,338.55. The Nasdaq Composite Index dipped 2.38 points to 2,870.42
Microsoft is expected to announce some news related to its own tablet computer Monday at an event in Los Angeles.
Shares of Microsoft, which rose 2.3% in Friday trading, edged up 0.4% in pre-market trading early Monday.
Shares of footwear retailer DSW plunged 13% in pre-market trading Monday after it warned that its fiscal second quarter earnings would come in at 60 to 64 cents a share, far below its previous guidance and a consensus forecast of 76 cents a share.
Shares of Facebook spiked 6% Friday, giving the company a second-straight day of gains -- something that has happened only twice since its IPO on May 18. But shares were down 0.5% from those levels in pre-market trading. An article in Monday's Wall Street Journal said decisions by Facebook lead underwriter Morgan Stanley were responsible for many of the problems with the Facebook IPO.
Morgan Stanley was down 1.7% following that report, along with the uncertainties in Europes. But it could be a difficult day for major financial stocks, The nation's largest banks, JPMorgan Chase, Citigroup and Bank of America, were all 0.9% or more lower in pre-market trading, and investment bank Goldman Sachs was off 0.1% on the uncertainty in Europe
Overseas, the win in Sunday's Greek vote by the New Democracy party -- which supports the European bailout -- was a positive for investors. There were worries that a victory by austerity opponents would lead to a Greek debt default and a potential breaking up of the euro-zone.
But the Greek vote did little to solve mounting problems in Spain. While the election lifted markets in Asia, a rally in European stocks proved short-lived, and rising bond yields in Spain and elsewhere across Europe reflected the growing concern.
Spain's IBEX 35 index slipped 1.4%. It was led lower by leading bank stocks, an indication of investors' focus on Spanish problems.
Yields on bond debt across the continent rose, led by Spain's 10-year yield touching a euro-era record high of 7.14%. Any reading above 7% is seen as a warning sign that a nation will need a bailout by other countries in the euro-zone. Yields on Italian 10-year bonds also moved above the 6% mark.
The price on the benchmark 10-year U.S. Treasury gained, lowering yields to 1.56% from Friday’s 1.59%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil faded $1.51 to $82.52 U.S.
Gold futures for August delivery fell $6.60 to $1,621.50 U.S. an ounce.
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