Canada's main stock index took a tumble on Monday, as the political impasse in Greece and signs that China was having a rough go of fixing its economy threatened to slow global growth prospects
The S&P/TSX Composite Index plummeted 167.41 points, or 1.4%, to begin the day and week at 11,527.26
The Canadian dollar settled back 0.40 cents to 99.58 cents U.S.
Among Canadian stocks to watch this morning, Legacy Oil + Gas Inc., which posted a first-quarter profit on increased production and higher prices.
Iamgold Corp.’s first-quarter net earnings from continuing operations fell 11% as gold production for the quarter fell and mining costs increased.
The CEO of Canadian Pacific has lost the support of two more big investors ahead of a crucial shareholder vote, pointing to victory for activist investor William Ackman in a bruising proxy battle.
Toronto Dominion Bank agreed to pay $62 million to settle U.S. lawsuits accusing it of charging customers excessive overdraft fees
ON BAYSTREET
The TSX Venture Exchange slipped 20.59 points to 1,325.74, while the Nasdaq Canada deducted 4.66 points to 375.84.
All 14 Toronto subgroups began the day in the red. Metals and mining got clubbed 3%, while materials lost 2.3%, and gold stocks were 2.2% to the bad.
ON WALLSTREET
U.S. stocks were bruised by new worries about European stability Monday.
The Dow Jones Industrials plunged 108.34 points to begin trading at 12,712.26
The S&P 500 faded 12.03 points to 1,341.36. The tech-rich Nasdaq Composite Index ducked back 21.83 to 2,911.99.
Investors will continue to pay close attention to the nation's big banks on Monday, after JPMorgan announced a $2-billion U.S. loss last week.
JPMorgan, which was down 9% Friday, lost another 1% in premarket trading Monday. Fitch Ratings downgraded JPMorgan's debt after the closing bell on Friday, voicing a concern over a "lack of liquidity."
Stocks of rival Wall Street firms Morgan Stanley and Citigroup were down more than 1%, while Goldman Sachs slid 0.6% in premarket trading Monday, following their 4% losses Friday on the JPMorgan news.
Yahoo CEO Scott Thompson lost his job Sunday, after it was found he padded his resume with an embellished college degree, ending his term at the company after just four months.
The Web portal company also announced it had reached a deal with activist shareholder Dan Loeb, the CEO of Third Point, who had initially disclosed the problems with Thompson's resume, as the company agreed to nominate three of four directors he had put forth for its board. Shares of Yahoo gained 2.7% in premarket trading.
Beauty company Avon Products announced on Sunday that it was considering a buyout offer from Coty Inc. The statement comes after Coty upped its offer last week and Warren Buffett's Berkshire Hathaway said it would back the purchase. Avon's stock jumped 5% in premarket trading.
Online deal site Groupon will report earnings after the closing bell. In recent months, Groupon has seen accounting problems, shareholder lawsuits and an examination by the Securities and Exchange Commission. Analysts surveyed by Thomson Reuters expect the company will report earnings of one cent per share on revenue of $531 million U.S.
Investors will be watching as European finance ministers meet over the next two days. The agenda includes a discussion over raising the profile of growth objectives within Europe, as well as allowing for continued discussion on plans for bank capital rules.
However, investors expect some chatter on Greece, as ministers continue to fret about the threat the debt-ridden country poses to the stability of the region's currency.
Greek politicians continue to try to form a new government after last week's elections, although the leader of the radical leftist Syriza coalition -- the second largest party in Greece -- said he would not attend talks on forming a ruling coalition.
The losses of the previous ruling coalition parties in Greek elections a week ago have raised new doubts about whether Greece, and some of the other weaker economies in Europe, will be able to stay in the euro-zone.
Investors will also watch Germany after German Prime Minister Angela Merkel's party lost elections in the nation's largest state on Sunday. Merkel is due to face national elections next year.
The price on the benchmark 10-year U.S. Treasury shot upward, pushing the yield down to 1.78% from Friday’s 1.84%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil fell back another $1.94 to $94.19 U.S.
Gold futures for June delivery lost another $22.40 to $1,561.60 U.S. an ounce.
