The Toronto stock market was pointed downward Monday amid rising metal prices and hopes that new administrations in Italy and Greece can institute the reforms required to keep their economies afloat.
The S&P/TSX composite index moved lower by 52.66 points to end the session at 12,224.19.
The Canadian dollar fell 0.82 cents to 98.36 cents U.S.
The financial sector provided lift, while Royal Bank rose 25 cents to $45.90, although Scotiabank faded five cents to $51.32.
Commodity stocks were the weakest sectors amid demand concerns.
Investors worry that the European debt crisis could derail a fragile economic recovery and push prices lower for commodities such as oil and metals, which in turn would send down stock values on the resource-heavy TSX.
The energy sector lost some territory as oil prices declined. Canadian Natural Resources was down 31 cents to $37.37.
The gold sector edged lower as Kinross Gold Corp. lost 15 cents to $14.27.
The base metals sector was off while the December copper contract gained five cents to $3.51 U.S. a pound. First Quantum Minerals was off 42 cents to $18.55.
In earnings news, Paladin Energy Ltd., an Australian-based uranium producer that trades on the TSX and Australian exchanges, deepened its third-quarter loss to $123.4 million U.S. from $3.5 million U.S. a year ago. Revenues doubled to $103 million on higher realized prices. Paladin shares gained 11 cents to $1.66.
In other corporate developments, Cameco is boosting its offer for junior uranium developer Hathor Exploration Ltd. to $625 million, as it battles a competing bid from global miner Rio Tinto. The Saskatoon-based uranium producer says the higher offer for Hathor is worth $4.50 per share. Cameco shares were higher by 15 cents to $20.18 while Hathor shares ran up 40 cents to $4.87.
ON BAYSTREET
The TSX Venture Exchange stepped back 2.79 points to 1,638.52, while the Nasdaq Canada index lost 6.85 points to 405.70
All but three of the 14 Toronto subgroups were lower at day’s end. Gold stumbled 1.3%, and materials and global base metals suffered 1.2% each.
The three gainers were consumer discretionaries, up 0.4%, real-estate, advancing 0.3%, and industrials, soldiering on 0.2%.
ON WALLSTREET
In New York, stocks slid Monday in afternoon trading as investors grew wary over whether political transitions in Greece and Italy will help resolve Europe's debt crisis.
The Dow Jones Industrials fell 74.70 points to 12,078.98.
The S&P 500 slid 12.07 points to 1,251.78, while the Nasdaq Composite Index faded 21.53 points
to 2,657.22.
Financial stocks were under pressure, with JPMorgan Chase and Bank of America leading the Dow's decline. Shares of Morgan Stanley, Goldman Sachs and Citigroup all fell about 3%.
Boeing said Monday it won the largest commercial airplane order in the company's history: an $18-billion U.S. order from Dubai-based Emirates Airline for 50 Boeing 777-300ERs. Shares of the aircraft manufacturer rose.
Warren Buffett said Monday that his company, Berkshire Hathaway, is boosting its stake in IBM. Shares of IBM edged higher.
Shares of Lowe's rose after the home improvement retailer reported a better-than-expected profit, although numbers dropped 44% from a year ago. Lowe's also improved its sales forecast for the year.
Shares of Caterpillar rose after the industrial vehicle company said it plans to build a new mining truck factory in Indonesia, and increase capacity at its large mining truck facility and track-type tractor facility in the United States.
Shares of J.C. Penney slipped after the retailer's profit met estimates, but guidance was below forecasts.
The U.S. Department of Transportation fined American Eagle, a subsidiary of American Airlines' AMR Corp., a civil penalty of $900,000 U.S. for delays that occurred earlier this year at Chicago O'Hare International Airport. Shares of the airline operator fell.
Over the weekend, embattled Italian Prime Minister Silvio Berlusconi stepped down, after the government passed a package of austerity measures. Former European Union commissioner Mario Monti was nominated to lead Italy.
While Monti will be at the helm in Italy, Berlusconi's party is still largest political force in parliament, and it could attempt "to stall the necessary reform agenda" in order to advance its own political agenda, one observer.
Investors will be watching Italian bond yields closely Monday, after a €3 billion of five-year bonds generated decent demand.
Yields on both the five-year and 10-year bonds still remain around 6.7%. Last week, the 10-year Italian yield spiked to a record high above 7% -- a level that eventually led to bailouts for Greece, Portugal and Ireland.
Greece swore in a new prime minister, Lucas Papademos, last Friday. Papademos, a former banker and European Central Bank vice president, will now move to form a new national unity government.
Even with the leadership changes, Europe's debt crisis is far from over, and investors will remain on edge until there is a clearer road to recovery.
The price on the 10-year Treasury moved higher, driving the yield down to 2.04% from the 2.06% figure Thursday. Bond markets were closed Friday for Veterans Day. Treasury prices and yields move in opposite directions.
Oil for October delivery subsided 97 cents to $98.02 U.S. a barrel
Gold futures for December delivery fell $9.70 to settle at $1,778.40 U.S. an ounce.
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