Stocks in Toronto plummeted in the first hour of trading Monday, on growing expectations that the U.S. Federal Reserve will scale back its monetary stimulus program as early as next month.
The S&P/TSX composite index dropped 65.40 points to open the week at 12,671.52
The Canadian dollar added 0.11 cents to 96.80 cents U.S.
RBC cut the rating on Lake Shore Gold Corp. to underperform from sector perform following recent share price appreciation. Lake Shore shares fell 2.5 cents, or 4.8%, to 49.5 cents.
CIBC cut the target price on Royal Host Inc. to $0.85 from $1 as the company was unsuccessful in seeking holder approval to amend terms of its Series D, 5.9 percent and its Series B, 6.0 percent convertible debentures due June 30, 2014 and Oct 31, 2015, respectively. Royal Host shares acquired a penny to 95 cents.
ON BAYSTREET
The TSX Venture Exchange sagged 0.57 points to 939.66
All 14 Toronto subgroups were lower in the first hour, weighed mostly by metals and mining stocks, down 1.3%, while gold and global base metals capsized 1.1% each.
ON WALLSTREET
Concerns about the U.S. Federal Reserve tapering of bond-buying have hit stocks. But with no economic data or significant earnings reports on tap Monday, the three major market indexes were only slightly higher.
The Dow Jones Industrials gained but 9.75 points to 15,091.20
The S&P 500 index added 2.85 points to 1,658.68. The NASDAQ tacked on 17.60 points to 3,620.38
Shares of Chesapeake Energy advanced following news that Carl Icahn boosted his stake in the natural gas company to almost 10%.
Apple, which Icahn announced a "large" position in last week, also continued to move higher.
The earnings calendar was light Monday, but results are due from J.C. Penney, Target and Hewlett-Packard later in the week.
Prices for the 10-year U.S. Treasury fell, raising yields to 2.86% from Friday’s 2.83%. Treasury price and yields move in opposite directions.
Oil prices fell 40 cents to $107.06 U.S. a barrel.
Gold prices subtracted two dollars to $1,369 U.S. an ounce
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