Investors felt around for the bruises, after an early collapse on the markets, amid more rumblings of discontent on debt markets elsewhere in North America and around the world.
The S&P TSX Composite Index opened down 192.72 or 1.6%, to begin the last full week of November at 11,699.72
The Canadian dollar lost 0.87 cents, trading at 96.47 U.S. cents. It was trading at 99 U.S. cents just a week ago.
The Toronto market tumbled 384 points or 3.13% last week as investors become more wary of making bets because of the uncertainty surrounding the debt crisis and frustration over Euro-zone leaders apparent lack of recognition that time is running out and the available options for dealing with it dwindle.
In Canadian corporate news, Valeant Pharmaceuticals International, Inc. says it has signed an agreement to acquire iNova, a private Australian pharmaceutical group in a deal that could be worth as much as $714 million.
Aecon Group Inc. said it has a preliminary agreement worth $250 million to do interior work on a new process mill at the Potash Corp mine site in Saskatchewan.
Economically speaking, Statistics Canada reported that wholesale sales increased for a fifth consecutive month in September, rising 0.3% to $48.7 billion. Gains in the food, beverages and tobacco products subsectors were partially offset by drops in the machinery, equipment and supplies’ sectors.
ON BAYSTREET
The TSX Venture Exchange subtracted 33.33 points to 1,574.34, while the Nasdaq Canada index faded 12.61 points to 386.92.
All but one of the 14 Toronto subgroups began the day in negative country. Metals and mining sank 4.6%, global base metals crumbled 3.5% and energy slid 2.7%.
Only health-care stocks held out against the tide, gaining 0.6%.
ON WALLSTREET
In New York, stocks followed world markets sharply lower Monday, after political leaders failed to reach an agreement on U.S. budget cuts over the weekend.
The Dow Jones Industrials staggered 235.83 points, or 2%, soon after the opening bell 11,560.30
The S&P 500 sifted off 25.66 points, to 1,189.99, while the Nasdaq Composite Index moved down 56.40 points to 2,516.10.
The Dow finished last week down 2.9%, while the S&P lost 3.8% and Nasdaq slid nearly 4%. The losses were the worst in two months for all three indexes.
Gilead Sciences said Monday it plans to buy drug developer Pharmasset for $11 billion U.S. Shares of Pharmasset soared nearly 85% while Gilead shares fell 10%.
Hewlett-Packard is on tap to report results after the bell.
Congress' super committee, which had been given extra powers to tackle the U.S.'s seemingly intractable debt problems, is expected to admit Monday that it could not agree on $1.2 trillion U.S. in budget reductions.
Investors are growing increasingly concerned that Congress's failure to act could cause Moody's and Fitch to consider downgrading U.S. debt, following S&P's downgrade in August.
Meanwhile, investors couldn't take any solace from Europe. Intensifying worries about the Euro-zone debt crisis pummeled European markets in early trading.
Moody's issued a warning about France's credit outlook, and Fitch said European banks may be forced to cut funding to emerging financial institutions if the crisis worsens. Meanwhile, grim comments by a high-ranking Chinese official about the global economy added to the selloff.
The deadline for the 12-member super committee to agree on a debt reduction package of at least $1.2 trillion U.S. is Wednesday. But as early as Monday, the congressional debt committee is likely to admit failure.
Economically speaking, the U.S. National Association of Realtors on Monday said existing home sales rose 1.4% to a seasonally adjusted annual rate of 4.97 million from 4.9 million in September. Economists had anticipated a decline to an annual rate of 4.8 million in October.
The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.96% from 2.01% late Friday.
Oil for October delivery fell $1.19 to $97.45 U.S. a barrel
Gold futures for December delivery lost $16.70 to $1,708.50 U.S. an ounce
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