Canadian stocks retreated Monday as an unexpectedly large trade deficit reported by China triggered concerns that growth in the number-two global economy, one of Canada’s biggest trading partners, is losing momentum.
The S&P/TSX Composite Index slipped 75.61 points to end the day at 12,428.01
The Canadian dollar shed 0.20 cents to 100.72 cents U.S.
Most commodities fell in the wake of China’s data, with both gold for April delivery and April crude oil under selling pressure on the New York Mercantile Exchange.
China said over the weekend that its trade gap last month stood at $31.48 billion U.S. A deficit had been expected, but its degree came in significantly above estimates.
Against this backdrop, shares of Canadian Natural Resources Ltd. lost 3.3% to $34.33, while Suncor Energy Inc. also fell 3% to $33.22. Rival Imperial Oil dipped 1.9% to $45.10
In the gold sector, Agnico-Eagle Mines Ltd. gave up 3.3% to $34.92, and Yamana Gold Inc. fell 3.2% to $16.15. Barrick Gold Corp. fell 0.4% to $45.25
BlackBerry maker Research In Motion Ltd. fared worse, trading down 3.1% to $13.05 in Toronto.
Viterra Inc rallied 6.8% to $14.50 following a report on Sunday that Glencore International PLC has bid $3.5 billion U.S. to buy the Canadian grains company.
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 down a penny at 94 cents.
ON BAYSTREET
The TSX Venture Exchange stepped back 13.71 points to 1,636.10, while the Nasdaq Canada index tripped 7.47 points to 409.15
Eight of the 14 Toronto subgroups ended the day lower. Metals and mining backpedaled 2.3%, while energy stocks faltered 1.7% and materials gave back 1.5%.
The half-dozen gainers were led by consumer staples, up 0.7%, telecoms, up 0.6%, and real-estate stocks, up 0.4%.
ON WALLSTREET
In New York, with little on the economic or corporate docket, investors opted for a wait-and-see stance Monday, ahead of the Federal Reserve's meeting and economic reports due later in the week.
The Dow Jones Industrials gained 37.69 points to finish at 12,959.70
The S&P 500 eked out a gain of 0.04 points to 1,370.91, while the Nasdaq weakened 4.68 points to 2,983.66
Shares of several large banks slid roughly 1% Monday, including Bank of America, JPMorgan Chase, Morgan Stanley, Credit Suisse and Jefferies.
Bank of America shares also fell because the bank said Friday 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 that 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 U.S. 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 round of stress tests, which is due out Thursday.
Economically speaking, the February Treasury Budget report showed a higher-than-expected of $231.7 billion U.S. Analysts had forecast $229 billion U.S, 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 U.S., 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 U.S. a gallon over Saturday and Sunday.
Treasury prices for the 10-year note picked up territory, lowering yields to 2.03% from Friday’s 2.04%. Treasury prices and yields move in opposite directions.
Oil for February delivery slid 98 cents to $106.42 U.S. a barrel.
Gold futures for April delivery fell $11.70 to $1,699.80 U.S. an ounce.
