Stocks in Canada’s largest market see-sawed in early trade on Monday, helped by gains in financial and consumer staple stocks while energy stocks weakened after crude oil prices extended recent losses.
The S&P/TSX composite index dipped 54.76 points to open a new week at 12,735.19, continuing a downward path, after being punished much of the week before.
The Canadian dollar perked 0.19 cents to 72.88 cents U.S.
Oil prices came close to 11-year lows on Monday on growing fears that the global oil glut would worsen in the months to come in a pricing war between leading Organization for the Petroleum Exporting Countries and non-OPEC producers.
Encana Corp , responding to a sharp drop in oil prices, has cut its 2016 capital budget by more than a quarter to $1.5 billion-$1.7 billion. Encana shares withered 69 cents, or 8.3%, to $7.62.
Sources say Valeant Pharmaceuticals Inc, under mounting pressure from U.S. Congress and prosecutors over its drug pricing, has hired an attorney in Washington, D.C. and crisis public relations experts with political connections.
Valeant shares triumphed $1.48, or 1.2%, to $129.60.
Canaccord Genuity starts coverage on Badger Daylighting with buy rating, and $31.00 price target. Badger shares gained 25 cents, or 1.1%, to $23.44.
Moreover, Canaccord Genuity cut the price target on BRP Inc. to $32.00 from $33.00, with a buy rating. The maker of Ski-Doos and Sea-Doos saw its shares subside 72 cents, or 3.3%, to $21.38.
Barclays cuts price target on Hudson's Bay Co. to $20.00 from $27.00, with equal-weight rating. Bay shares fell 36 cents, or 2.1%, to $17.04.
ON BAYSTREET
The TSX Venture Exchange retreated 2.57 points to 499.52.
Seven of the 13 TSX subgroups were lower, as gold dimmed 1.9% in price, energy sank 1.8%, and materials weakened 1.4%.
The half-dozen gainers were led by consumer staples, up 1%, health-care, haler by 0.6%, and telecoms, clicking 0.4%. higher.
ON WALLSTREET
U.S. stocks fluctuated between slight gains and losses Monday, attempting to shake off an extended decline in oil prices ahead of the Fed's key decision on rates this week.
The Dow Jones industrial average gave back 16.37 points to start the day and the week at 17,248.64, after a Friday plunge of more than 300 points. Walt Disney led advancers and DuPont was the greatest decliner.
The S&P 500 inched back 0.79 points to 2,011.58, with financials leading seven sectors higher and materials the greatest laggard.
The NASDAQ index dropped 0.59 points to 4,932.87, as Apple traded more than 1.5% lower, while biotech stocks gained
Both Brent and U.S. crude oil have fallen every day since OPEC on Dec. 4 abandoned its output ceiling. In the past six sessions, they have shed more than 13% each.
OPEC has been pumping near record levels since last year in an attempt to drive higher-cost producers such as U.S. shale firms out of the market.
Prices for the 10-year Treasury retreated, raising yields to 2.19% from Friday’s 2.14%. Treasury prices and yields move in opposite directions.
Oil prices slid 38 cents a barrel to $35.24 U.S.
Gold prices ducked lower $4.42 to $1,070.35 U.S. an ounce.
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