Markets round the world were sent reeling Monday from election results in France and Greece over the weekend that seemed effectively to put the brakes on austerity measures that assured investors.
The S&P/TSX Composite Index fell 44.17 points in Monday’s first hour to 11,827.06
The Canadian dollar perked 0.20 cents to 100.62 cents U.S.
Economic concerns tended to overshadow a series of positive earnings reports last week from BCE Inc. insurer Manulife Financial, Suncor Energy and Barrick Gold Corp.
It was light on the earnings calendar Monday with Cargojet Inc. reporting that net income dropped to $30,000 or nil per share in the three months ended March 31. That compares to $1.3 million or 16 cents per share a year ago.
Revenues weakened to $40.1 million from $41.1 million in the comparable period first-quarter results were affected by a continuation of declining volumes in its key overnight cargo services.
The pace picks up later in the week when food company and Loblaw majority share owner George Weston reports on Tuesday, home improvement retailer Rona, HudBay Minerals and Tim Hortons and pipeline company Enbridbge hand in earnings on Wednesday. Insurer Sun Life Financial and Canadian Tire report on Thursday.
Elsewhere in corporate news, Bank of Montreal is setting up an office in the United Arab Emirates. The move expands its asset management and investment banking services to clients in the Middle East and North Africa.
On the economic slate, Statistics Canada told us this morning that building permits reached $6.8 billion in March, up 4.7% from February following a 7.6% increase the previous month, mostly due to higher construction intentions for both institutional and commercial buildings, and mostly in Ontario.
ON BAYSTREET
The TSX Venture Exchange moved forward 1.76 points to 1,406.81, while the Nasdaq Canada fell 4.35 points to 384.89.
All but two of the 14 Toronto subgroups were lower at the beginning. Metals and mining stocks sank 2.4%, global base metals were off 1.4%, and materials were off 1.3%.
The two gainers were utilities and consumer staples, each up no more than 0.1%.
ON WALLSTREET
U.S. stocks slipped at the open Monday following declines in world markets on concerns about election results in Europe.
The Dow Jones Industrials faded 49.35 points to open at 12,988.92.
The S&P 500 gave back 2.36 points to 1,366.74. The tech-rich Nasdaq Composite Index shed 2.90 to 2,953.44.
In corporate news, DISH Network reported quarterly results Monday morning. The cable television provider announced that net income plunged to $360 million U.S. in the first quarter of 2012, compared to $549 million U.S. in the year-ago quarter.
Shares of bailed-out insurer AIG fell after the Treasury Department announced that it was planning to sell 163.9 million shares for $30.50 U.S. each -- down from Friday's closing price of $32.83 U.S.
Dow component Walt Disney rose after its film "The Avengers" smashed opening weekend box office records with $200.3 million U.S. in domestic ticket sales. The numbers came in far above the previous record of $169.2 million U.S. that had been close to the forecast for its opening weekend.
World markets were mixed Monday after Socialist Francois Hollande defeated president Nicolas Sarkozy, leaving investors worried about the future of austerity throughout Europe.
Hollande has advocated a shift away from austerity policies to deal with the continent's sovereign debt crisis and advocated for more economic stimulus. But the concern is whether or not such policies will derail previously-announced bailout deals, in which stronger economies such as Germany provide assistance for the weaker economies facing default on their debt.
In the Greek elections, the two most established parties both lost seats in parliament, leaving no party with anything close the majority of seats needed to form a government. The vote could set the stage for a new round of elections, and prolonged uncertainty for how Greece will comply with terms of the European bailout package.
On the economic slate, analysts surveyed by Briefing.com expect consumer credit to have expanded by $11 billion U.S. in March, after an $8.7-billion U.S. increase in the month prior.
The price on the benchmark 10-year U.S. Treasury edged higher, pushing the yield down to 1.87% from Friday’s 1.88%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil fell $1.19 to $97.30 U.S.
Gold futures for June delivery fell $7.30 to $1,639.00 an ounce.
