Equity markets in Toronto dropped on Monday as the price of oil tumbled after Goldman Sachs cut its outlook for the commodity, pushing down shares of energy producers.
The S&P/TSX composite index remained 95.02 points, off its lows of the morning, to pause for noon at 14,448.80
The Canadian dollar was unchanged at 88.99 cents U.S.
The TSX's decline on Monday follows the benchmark's biggest weekly jump in more than a year. Fund managers said investors should expect more volatility in the coming months.
Shares of energy producers fell as Canadian Natural Resources Ltd lost 3% to $37.77, and Suncor Energy gave back 2.8% to $37.78.
Financials declined as Royal Bank of Canada was down 0.9% at $78.55, and Toronto Dominion Bank dropped 0.6% to $53.96.
ON BAYSTREET
The TSX Venture Exchange dropped 11.21 points to 794.24.
Eight of the 14 Toronto subgroups remained lower by midday, with energy plunging 2.9%, metals and mining down 1.7%, and global base metals off 1.5%.
The five gainers were led by consumer staples, ahead 0.9%, while information technology progressed 0.5%, and real-estate eked ahead 0.3%.
Telecoms were unchanged at noon hour.
ON WALLSTREET
Energy shares dragged Wall Street slightly lower on Monday as crude prices fell further, while U.S. and German data weighed.
The Dow Jones Industrials were down 18.69 to 16,786.72.
The S&P 500 fell 4.30 points to 1,960.28. The NASDAQ index was lower by 7.40 points to 4,476.33.
The largest percentage gainer on the S&P 500 and the NASDAQ 100 was Micron, which rose 3.4% after it announced a $1-billion U.S. stock buyback authorization.
The largest decliner on the S&P 500 was Newfield Exploration, down 6.4%, and on the NASDAQ 100 it was Liberty Interactive Corp, down 2.2%.
Shares of Brazilian companies traded in the United States tumbled after incumbent Dilma Rousseff won reelection in a runoff vote, defeating centrist and market favorite Aecio Neves by a slim margin. Petrobras ADRs slumped 14.8% to $11.01 U.S. and Vale lost 6.4% to $10.45 U.S. Itau Unibanco fell 6.1% and Banco Bradesco lost 7.1%.
Sarepta Therapeutics shares fell 30% to $16.48 U.S. after it said the U.S. Food and Drug Administration requested additional data regarding a marketing application for its experimental muscle disorder drug.
U.S. services sector activity dipped to a six-month low in October and a separate report showed contracts to buy previously owned homes rebounded less than expected in September.
This week, markets will focus on the U.S. Federal Open Market Committee meeting, where the central bank is expected to announce the end of quantitative easing.
Traders will be looking to see if the Fed drops the "considerable period" language in referencing its plans keeping rates low, at its two-day policy meeting, which concludes Wednesday. As several Fed officials have come out with dovish comments recently, investors largely expect that guidance to be reiterated.
German business sentiment fell in October for a sixth straight month to its lowest level in almost two years, adding to recent concerns the largest European economy may continue to struggle to grow.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.25% from Friday’s 2.27%. Treasury prices and yields move in opposite directions.
Oil prices dipped 71 cents to $80.30 U.S. a barrel.
Gold prices faltered $2.80 to $1,229.00 U.S. an ounce.
Related Stories
