The Toronto stock market gave back a good-sized chunk of last week’s gains on Monday after a strong runup in oil prices raised questions about the durability of the global economic recovery.
The S&P TSX Composite Index approached noon down 31.92 points to 12,693.85, off its lows of the day.
The Canadian dollar was flat at 100.14 U.S. cents, as prices for crude and copper fell following substantial gains last week.
On the TSX, Canadian Natural Resources gave back 50 cents to $37.50.
The base metals sector lost ground while copper prices also fell back after rallying about 4% last week, partly on signs that China could take further steps to loosen lending and encourage economic growth.
China is the world’s biggest consumer of the metal, which is known as an economic bellwether as it is used in so many different businesses. Copper futures were down two cents to $3.84 U.S. a pound. Teck Resources dropped 77 cents to $39.89.
Bullion prices also backed off. Agnico Eagle Mines faded 52 cents to $36.38.
Financials were down, as Royal Bank fell 41 cents to $54.25.
National Bank of Canada shares were down 49 cents to $76.10 as it said it is selling asset management business Natcan Investment Management Inc. to Fiera Sceptre Inc. for $309.5 million.
Fiera shares jumped 82 cents or 11.39%, to $8.02
In other corporate news, Bowood Energy Inc. says it is evaluating strategic alternatives which could include the sale of the junior Calgary oil and gas company. Its shares added half a cent to 22.5 cents.
Air freight carrier Cargojet Inc. said it was caught off guard by a decline in volumes in its key overnight cargo services during the fourth quarter as profits plummeted 52.2 per cent to $3.2 million. Revenue held steady at $42.9 million and its shares fell 40 cents to $8.22.
Canadian banks will be front and centre this week as the quarterly earnings season winds down.
Bank of Montreal is scheduled to post its earnings on Tuesday while TD Bank, Royal Bank and National Bank all report on Thursday.
In Canada, traders will get the first official estimate for how the economy grew during 2011. On Friday, Statistics Canada releases gross domestic product data for the month of December and the fourth quarter. Economists are looking for the data to show the economy stalled during the last three months of the year, growing at an annual rate of 1.8%.
Traders will also take in the latest reading on U.S. consumer confidence from the Conference Board on Tuesday while Institute for Supply Management releases its index on the U.S. manufacturing sector Thursday.
ON BAYSTREET
The TSX Venture Exchange cut 2.74 points to 1,686.78, while the Nasdaq Canada index fell 1.42 points to 427.15
All but four of the 14 Toronto subgroups were still negative by noon. Metals and mining pointed downward 1.2%, while energy stocks registered 0.8% lower and global base metals were weaker by 0.7%.
The three gainers were health-care, stronger by 1.1%, consumer staples, scraping by 0.2%, and utilities, up a mere 0.01%. Industrials were flat at the noon hour.
ON WALLSTREET
In New York, stocks regained lost ground by lunch time on Monday as concerns about Europe's debt crisis returned and gas prices continued to rise.
The Dow Jones Industrials poked higher 24.29 points midday to 13,007.20
The S&P 500 added 2.02 points to 1,367.76, while the Nasdaq regained 6.68 points to 2,970.43
Bank of America and Hewlett-Packard were the biggest drag on the Dow, while Disney was the only gainer on the index.
Lowe's shares popped after the home improvement retailer posted better-than-expected earnings and sales for the fourth quarter, and issued a healthy guidance for 2012.
Transocean booked a $6.1-billion U.S. loss, mostly on one-time charges including a $1-billion U.S. estimated loss on the 2010 spill at its Deepwater Horizon rig in the Gulf of Mexico. But shares of the company rose as revenue climbed 11% during the quarter and topped expectations.
After the closing bell, Priceline.com is expected to post quarterly results.
Motorola Solutions said that it bought back $1.2 billion U.S. in stock from activist investor Carl Icahn and affiliates. As part of the transaction, Vincent J. Intrieri, a director of Icahn Enterprises G.P., agreed to resign from the Motorola Solutions' board of directors.
Over the weekend, Berkshire Hathaway reported that its book value per share rose 4.6% in 2011 -- hardly a mighty leap but enough for the company's chairman, Warren Buffett, to meet his annual goal of beating the total return of the S&P 500 index, which climbed 2.1%.
Meanwhile, the German Parliament will vote Monday on the nation's contribution to a second €130-billion bailout for Greece, which is deeply unpopular among voters.
German Chancellor Angela Merkel urged lawmakers to support the package, but acknowledged that there is no guarantee it will work, according to reports.
Aside from Europe, investors are also keeping watch on the oil market, where crude futures rose above $109 U.S. a barrel Friday amid concerns about increased tensions between Iran and Western powers. The rise in oil prices has translated into higher gas prices; the national average has climbed for the past 20 days, including a one-cent-per-gallon climb Monday.
Economically speaking, a report on pending home sales in January is due Monday
Analysts surveyed by Briefing.com expect pending home sales for the month of January to have ticked up by 1%, after declining by 3.5% in the month prior.
Treasury prices for the 10-year note gained ground, lowering yields to 1.93% from Friday’s 1.98%. Treasury prices and yields move in opposite directions.
Oil for February delivery capsized 64 cents to $109.13 U.S. a barrel.
Gold futures for April delivery fell $2 to $1,774.50 U.S. an ounce.
