Stocks backtracked in Toronto on Monday, despite weak Chinese data that pushed commodity prices lower.
The S&P/TSX composite index docked 61.97 points to begin the day and week at 15,469.61
The Canadian dollar recovered 0.17 cents to 90.38 cents U.S.
Goldman Sachs cut the rating on TransCanada Corp. to sell from neutral. TransCanada stock dipped $1.86, or 3.1%, to open at $57.62.
BMO raised the target price on Canadian Pacific Railway to $240 from $220. CP shares gained 42 cents to $223.31.
In the economic docket, Canada's closely watched ratio of household debt to income rebounded to 163.6% in the second quarter from 163.1% in the first, following a pattern which typically sees a second-quarter rise, Statistics Canada indicated on Friday.
Moreover, the average price of a Canadian home increased by more than 5% in the past year, according to the Canadian Real Estate Association, which adds the average home sold in Canada went for $398,618 in August.
ON BAYSTREET
The TSX Venture Exchange dropped 3.37 points to 984.56.
All but three of the 14 Toronto subgroups were down in the first hour, with metals and mining tumbling 1.4%, while materials and consumer discretionaries each faded 0.8%.
The three gainers were industrials, up 0.06%, consumer staples, nosing ahead 0.03%, and energy just above breakeven.
ON WALLSTREET
U.S. stocks inched lower on Monday adding to last week’s declines as caution prevailed ahead of the Federal Reserve’s September meeting, at investors expect the Fed to adopt a more hawkish tone in its statement.
The Dow Jones Industrials inched higher by 12.28 points to open Monday at 16,999.79.
The S&P 500 dropped 1.40 points to 1,984.14. The NASDAQ dipped 34.07 points to 4,533.53
Yahoo Inc shares gained 2% on top of more than an 8% increase last week and remained in the spotlight as Alibaba prepares for its much-hyped IPO. Yahoo holds roughly a 23% stake in the Chinese e-commerce giant and intends to sell at least a portion of those shares during the IPO, raising the prospect of a big cash windfall.
European and U.S. brewers were in focus after news reports of potential financing of deals between AB InBev and SABMiller. SABMiller soared 11%, Molson Coors jumped 7.4%, AB InBev was up 2.8%.
Shares of Cognizant Technology Solutions Corp. climbed 2.8% after the IT company said it agreed to buy privately held TriZetto Corp. for $2.7 billion U.S. in cash.
Apple Inc. inched 0.5% higher after the tech company said Friday preorders for its new iPhones hit a record, though it didn’t provide details.
Netflix is launching in three new markets in Europe on Monday, with initial resistance to the arrival of the streaming-media company in France potentially alleviated by a set-top box deal with Bouygues SA
U.S. health-care group Danaher Corp. said Monday it will buy Swiss dental-implant maker Nobel Biocare Holding AG in a cash deal worth $2.1 billion U.S.
Official figures from China on Saturday showed the country’s industrial output growth slipped in August to its lowest level since the 2008 global financial crisis, dealing a blow to companies and economies dependent on China.
Investors are watching for signs that the Fed may signal the start of interest-rate hikes earlier than expected ahead of a two-day Federal Open Market Committee meeting set to begin Tuesday.
The Empire State manufacturing survey improved to a near five-year high, though the details were not as strong as the headline index, the New York Fed said Monday. Futures have not moved after the release.
Separately, industrial production declined unexpectedly in August to mark the first drop since January, and a series of revisions left output in July lower than previously estimated, according to data released Monday.
Prices for 10-year U.S. Treasuries gained, lowering yields to 2.59% from Friday’s 2.61%. Treasury prices and yields move in opposite directions.
Oil prices inched up one cent to $92.28 U.S. a barrel.
Gold prices gained $2.90 to $1,234.40 U.S. an ounce.
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