Canadian stocks felt the jitters associated with iffy China data Monday, as investors proved hesitant to rush in and buy.
The S&P/TSX Composite Index slipped 72.73 points to approach noon at 12,430.89
The Canadian dollar shed 0.31 cents to 100.61 cents U.S.
In Canada, on a day light on economic news, investors will be keeping a close eye on Viterra Inc. after the Sunday Telegraph reported that Glencore PLC is behind a $5.5-billion offer for the Canadian grain handler. Viterra shares greeted lunch hour at $13.96, or 2.8% higher than Friday’s close.
The federal government is preparing back-to-work legislation for Air Canada so that it can respond quickly if there is any work stoppage at the airline, the government said on Friday. Shares were unchanged at 95 cents.
Pulp producer Mercer International Inc. said the Court of Québec has reversed a cease trade order against a private placement of special warrants by Fibrek Inc to Mercer.
Canadian commodity producers weighed on the TSX. Suncor Energy Inc. fell 1.5% to $33.74 and Barrick Gold Corp. fell 0.5% to $45.23, reflecting declines in the price of crude oil and gold.
Other notable movers were Manulife Financials, down 0.3% to $12.19, Atco Ltd., up 1.1% to $70.81, and Novadaq Technologies, ahead 1.9% to $6.47.
ON BAYSTREET
The TSX Venture Exchange stepped back 7.82 points to 1,641.99, while the Nasdaq Canada index tripped 6.79 points to 409.83
Nine of the 14 Toronto subgroups broke for lunch lower. Metals and mining backpedaled 2.4%, while energy stocks faltered 1.4% and materials gave back 1.3%.
The five gainers were led by telecoms, up 0.6%, real-estate stocks and consumer discretionaries, up 0.4% each.
ON WALLSTREET
In New York, with little on the economic or corporate docket, stocks were essentially unchanged by noon Monday, a sign that investors may stay on the sidelines ahead of Tuesday's Fed meeting.
The Dow Jones Industrials inched ahead 15.63 points to hit noon at 12,937.70
The S&P 500 stumbled 2.18 points to 1,368.69, while the Nasdaq weakened 10.63 points to 2,977.71
Bank of America shares slid. On Friday, the bank said it would significantly slash mortgage balances for as many as 200,000 borrowers, as part of the $26-billion U.S. settlement reached between the five major mortgage servicers.
Youku and Tudou -- often called the YouTubes of China -- announced a merger Monday that sent Tudou shares up by a whopping 127%. The new venture will be called Youku Tudou Inc.
Carnival shares edged higher. The cruise line posted a quarterly loss on Friday, but said bookings were up.
Shares of PepsiCo rose after the company announced Brian Cornell has rejoined the company as CEO of PepsiCo Americas Foods and John Compton will become president of PepsiCo.
Clothing retailer Urban Outfitters will report its quarterly results after the closing bell.
Analysts surveyed by Thomson Reuters expect the company to post earnings of 29 cents a share on $741 million U.S. in revenue.
The Federal Reserve is expected to announce Tuesday that it will leave key interest rates unchanged at very low levels -- but investors will be looking for clues as to how the central bank plans to proceed in the coming months.
Investors are also anxiously awaiting the Fed's report on how U.S. banks fared during the latest rounds of stress tests due out Thursday
Economically speaking, the February Treasury Budget report is expected to show a deficit of $229 billion U.S., according to a survey of analysts by Briefing.com, up from $222.5 billion U.S. in February 2011.
The national average price for a gallon of gasoline rose above the $3.80 U.S. mark Monday, resuming the advance that has plagued drivers throughout the winter.
The average price rose nine-10ths of a cent, according to the survey of gas stations conducted for the motorist group AAA. It was the third straight advance, with prices gaining 3.4 cents a gallon over Saturday and Sunday.
Treasury prices for the 10-year note picked up territory, lowering yields to 2.01% from Friday’s 2.04%. Treasury prices and yields move in opposite directions.
Oil for February delivery slid $1.08 to $106.32 U.S. a barrel.
Gold futures for April delivery fell $9.30 to $1,702.20 U.S. an ounce.
