Stocks in Toronto were flat Monday as news from Europe takes centre stage and markets remain wary following reports of the death of North Korean leader Kim Jong-il.
Investors are expected to closely watch European Central Bank President Draghi's testimony for clues on more bond-buying and euro-zone finance ministers' discussion on fiscal compact and International Monetary Fund lending.
The S&P/TSX Composite Index dipped 1.97 points, to begin the final full week of 2011 at 11,629.30. The benchmark index lost more than 3% last week.
The Canadian dollar gained 0.12 cents to 96.57 cents U.S.
Among Canadian stocks to watch this morning, government sources in Israel said fertilizer maker Potash Corp. is seeking permission from authorities to raise its stake in rival Israel Chemicals to 25%.
U.S. Senate Republicans claimed victory on Saturday for a bill that may force President Barack Obama to make a speedier decision on TransCanada Corporation's Canada-to-Texas oil pipeline, but a White House official indicated quick approval of the project is not likely.
Pengrowth Energy Corp said on Saturday a wellsite pipeline at its Judy Creek field in northern Alberta had leaked about 1,900 cubic meters of water and oil, the latest in a series of pipeline problems the company suffered this year.
European Goldfields, which has agreed a $2.4-billion takeover by Canadian-listed rival Eldorado Gold, said an investment deal with Qatar's sovereign wealth fund remained in place for now.
China-focused forestry firm Sino-Forest, accused of fraud, said it received notices of default from its noteholders and set up a committee to look at options for the company that could include its sale.
HudBay Minerals Inc. said it expects copper production to fall next year, hurt by the closures of its Trout Lake and Chisel North mines in Manitoba
First Uranium announced it will seek approval to reduce workforce and cut costs at its Ezulwini Mine in South Africa.
On matters economic, Statistics Canada reported this morning that wholesale sales increased 0.9% to $49.2 billion in October, with growth in the west driving much of the hike.
ON BAYSTREET
The TSX Venture Exchange shaved 1.07 points to 1,425.04, while the Nasdaq Canada index was down 2.52 points to 351.70
The 14 Toronto subgroups were evenly divided in the first hour of trading. Industrials led the gainers, up 0.6%, while telecoms and consumer staples were up 0.5% each.
Materials and global base metals equally weighed the seven laggards, down 0.7% each, while gold skidded 0.6%.
ON WALLSTREET
In New York, stocks pointed to a tepid open Monday, as investors wade through news overseas of Kim Jong Il's death and await developments out of Europe.
The Dow Jones Industrials moved up 26.83 points to open the week at 11,893.22
The S&P 500 added 0.97 points, to 1,220.63, while the Nasdaq Composite prospered 6.94 points to 2,562.27
Saudi Prince Alwaleed Bin Talal and his investment company, Kingdom Holding Company, announced a combined investment of $300 million U.S. in Twitter, a social media website.
Shares of Winn Dixie fell nearly 6%, after the food retailer agreed to merge with Bi-Lo to create an organization of 690 grocery stores throughout the U.S. Bi-Lo will acquire the outstanding Winn Dixie shares.
Research in Motion shares fell slightly in pre-markets, after the BlackBerry maker offered a disappointing outlook for the current quarter and next year in releasing its earnings results.
Shares of Zynga rose 10% in their public debut on the Nasdaq Friday, before closing the day down 5% from the firm's initial public offering price. The maker of popular Facebook game FarmVille priced shares at $10 U.S. apiece in its IPO late Thursday.
Asia markets tumbled on Monday, after news of North Korean leader Kim Jong Il's death broke. The enigmatic leader, who succeeded his father 17 years ago, suffered from a heart attack, according to a state media report.
Fears of the euro-zone debt crisis and potential credit downgrades also weighed on investors Monday.
Stocks ended Friday mixed, after a roller-coaster week in which all three indexes each lost more than 2.5%. Part of the sell off came after Fitch put seven European countries on credit watch negative, citing the higher probability that it could downgrade these nations in the next few months.
But investors breathed a sigh of relief that France, in particular, retained its pristine AAA rating. Fitch also affirmed the ratings of Belgium, Spain, Slovenia, Italy, Ireland and Cyprus, while putting them on review for potential near-term downgrades Friday after the European markets closed.
The price on the benchmark 10-year U.S. Treasury eked upward, pushing the yield down to 1.84% from 1.85% Friday. Treasury prices and yields move in opposite directions.
Oil for January delivery moved ahead 73 cents to $94.26 U.S. a barrel.
Gold futures for February delivery fell $2.40 to $1,595.50 U.S. an ounce.
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