Canadian stocks tumbled Monday, amid heightened worries surrounding the future of the euro-zone, as energy and mining stocks pressured the market.
The S&P/TSX Composite index tumbled 77.37 points to end the session at 11,545.54
The Canadian dollar faded 0.27 cents to 98.34 cents U.S.
In corporate news, China’s Cnooc Ltd. agreed to buy oil and gas producer Nexen Inc. for $15.1 billion U.S., pending regulatory approval. Shares of Calgary-based Nexen shot up 52.6% following the news to close the day at $26.38.
Further, Talisman Energy Inc. announced a deal to sell a 49% stake in its British North Sea assets to China’s Sinopec. Talisman shares rose 6.9% to $11.81.
Other Canadian energy companies, however, were in the red. A 3.4% loss in shares of Second Wave Petroleum Inc. – which closed at 85 cents -- and 4.8% decline in Ithaca Energy Inc. shares were among the weakest performers. Ithaca closed at $1.98.
Gold and copper mining companies also weakened, with Hudbay Minerals Inc. shaving off 5% to $8.10, San Gold Corp. slipping 5.3% to 89 cents, and New Gold Inc. down 5.2% to $9.69.
In other corporate developments, regulatory filings show that investor Prem Watsa now has a 9.9% stake in BlackBerry maker Research in Motion Ltd. Watsa is the CEO of insurer Fairfax Financial Holdings Ltd. He had earlier reported a 5.12% holding in RIM.
Watsa’s stake was valued at about $356.2 million, as of Friday’s closing on the TSX.
RIM dipped 10 cents, or 1.5%, to $6.97.
ON BAYSTREET
The TSX Venture Exchange retreated 22.03 points to 1,174.16. The Nasdaq Canada index plunged 8.07 points to 330.88.
All but one of the 14 Toronto subgroups lost ground on the day, with metals and mining weighing most heavily, at 3.1%, global base metals off 2%, and materials sliding 1.9%.
The lone stalwart was energy, up 2.4%.
ON WALLSTREET
Stocks pared losses on Monday afternoon, but all three indexes were still down substantially, as worries that Spain may need a full-blown bailout sparked a global selloff.
The Dow Jones industrial average declined 101.11 points to close at 12,721.50, after falling more than 230 points during the morning run
The S&P 500 gave back 12.23 points to 1,350.43. The Nasdaq fell 35.15 points to 2,890.15.
McDonald's shares slipped after the fast-food restaurateur missed earnings and revenue expectations, citing a slowing global economy.
Hasbro's stock rose after the toymaker reported second-quarter earnings beat analyst expectations. But the gains were limited as the company's revenue dropped 11% and missed Wall Street's forecast.
Shares of Halliburton edged higher after the oil and natural gas services company posted better-than-expected earnings as strong drilling activity in international markets offset a slowdown in North America.
Later this week, UPS, AT&T, Ford, Apple and Amazon are slated to open their books. Facebook is also set to report its first quarterly earnings as a public company.
Shares of Nexen jumped more than 50% after China's state-owned oil producer CNOOC agreed to buy the Canadian oil and gas producer for $15.1 billion U.S.
Shares of GenOn and NRG Energy climbed after NRG agreed to buy the Houston-based wholesale power provider in an all-stock deal worth about $1.7 billion U.S.
The selling was widespread, with oil prices tumbling 4% and copper prices skidding 2.3%. The euro weakened further, falling as low as $1.207.
The debt crisis plaguing Europe is taking a toll on Spain's regional economies, with at least one region, Valencia, said to have requested emergency funding last Friday. A second eastern region, Murcia, denied reports that it was gearing up for its own request.
Euro-zone finance ministers finalized initial bailout terms for Spanish banks, but observers fear that may not be enough.
The yield on the 10-year Spanish bond jumped to a euro-area record high of 7.565% from 7.267% late Friday. Spain's leaders have said that 7% is an unsustainable level. It's also a level that flashes the first bailout signals.
The Bank of Spain also reported that the nation's economy contracted by 0.4% in the second quarter -- that's the third quarterly contraction and shows the euro-zone's fourth-largest economy could be mired in recession for some time.
The price on the benchmark 10-year U.S. Treasury strengthened, pushing the yield down to 1.44% from 1.46% late Friday. Treasury prices and yields move in opposite directions.
Oil for September delivery staggered $2.90 to $88.93 U.S. a barrel.
Gold futures demurred $1.60 to $1,576.40 U.S. an ounce.
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