Stocks in Canada’s biggest centre stubbed their toes on the way out of the gate Monday, with declines in all key sectors led by energy stocks, but Hudson's Bay Co was among the few gainers, jumping more than 12% after announcing a deal to buy German department store chain Kaufhof.
The S&P/TSX composite index was down 47.56 points to open the week at 14,693.59
The Canadian dollar drooped 0.11 cents to 81 cents U.S.
The unsuccessful talks, which lasted less than an hour on Sunday, dragged on the euro and helped boost the dollar, which weighed on gold and oil prices.
Hudson's Bay Company is buying German department store chain Kaufhof from Metro for 2.8 billion euros ($3.2 billion) as a launch pad to expand into Europe. Bay shares leapt $2.46, or 10.3%, to $26.46.
Bombardier's new CSeries narrow-body jet is outperforming expectations for fuel efficiency and performance, the Canadian manufacturer said on Sunday, as it tries to boost sales of the plane. Bombardier shares got seven cents worth of lift, or 2.8%, to $2.61.
CIBC cut the target price on AGF Management to $7.00 from $7.75. AGF shares retreated 11 cents, or 1.7%, to $6.42.
Canaccord Genuity initiates coverage on BCE Inc. with a hold rating. BCE shares took on nine cents to $53.40.
CIBC cut the target price on Canadian National Railway to $85 from $9.00. CNR shares gained 37.5 cents to $73.39,
On the economic ledger, Statistics Canada reported that manufacturing sales in April fell 2.1% to $49.8 billion, the third decline in four months.
Moreover, the Canadian Real Estate Association reported this morning that national home sales activity rose 3.1% from April to May, a fourth consecutive month-over-month increase. CREA also said actual (not seasonally adjusted) activity stood 2.7% above May 2014 levels.
ON BAYSTREET
The TSX Venture Exchange lopped off 0.77 points to 681.37.
All but three of the 14 Toronto subgroups were in the red in the first hour, most notably health-care and global base metals, each down 0.9%, while energy sliding 0.7%.
The three gainers were gold, up 0.7%, materials, up 0.4%, and industrials, off 0.02%.
ON WALLSTREET
U.S. stocks traded nearly 1% lower on Monday, following a decline in European equities on the collapse of weekend talks between Greece and its creditors.
The Dow Jones Industrials plunged 156.05 points to open Monday at 17,742.79, falling back into the red for 2015. United Technologies led declines across all blue chips.
The S&P 500 index slid 17.12 points to 2,076.99, with information technology leading all 10 sectors lower.
The NASDAQ moved lower 57.12 points to 4,993.98
Economic reports on Monday mostly missed expectations. However, the second-tier data follows recent improvement in retail sales and
the labour market.
Empire manufacturing data showed the weakest level in more than two years as new orders fell, Reuters said. The New York Fed's Empire State general business conditions index fell from 3.09 in May to -1.98 in June, hitting its lowest level since January 2013.
May industrial production unexpectedly fell, dropping 0.2% in May.
The National Association of Home Builders housing market index rose more than expected, gaining five points in June to the highest since last September.
European Central Bank President Mario Draghi said on Monday that the ECB would continue approving emergency funding for Greek banks as long as they have enough cash and collateral to operate. He added "the ball lies squarely in the camp of the Greek government to take the necessary steps."
Outside of developments in the Greece debt talks, the key event for the week is the U.S. Federal Open Market Committee's two-day meeting, which begins on Tuesday and concludes Wednesday afternoon with a statement and press conference. Investors will scrutinize the release for indications on the timing of a short-term interest rate hike, for which consensus is September.
Prices for 10-year U.S. Treasuries gained sharply, lowering yields to 2.33% from Friday’s 2.39%. Treasury prices and yields move in opposite directions.
Oil prices lost 56 cents a barrel to $59.40 U.S.
Gold prices inched ahead two dollars at $1,181.20 U.S. an ounce.
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