The Toronto stock market dipped below breakeven Monday, despite sentiment improved by weekend polls indicating Greeks want to stay in the euro-zone and hopes that China will take steps to stimulate its economy.
The S&P/TSX Composite Index slid 29.97 points to approach noon at 11,546.60.
The Canadian dollar gained 0.16 cents to 97.58 cents U.S.
The TSX ran ahead 2.6% last week, snapping a three-week losing run as traders feeling the market was looking oversold picked up stocks beaten down during May. But the TSX is still down a good 6% from May 1.
Worries of a slowing global economy have also taken a toll and the TSX has dropped more than 9% since the 2012 highs of late February.
On the corporate front, Canadian Pacific Railway was in focus with the federal government expected to introduce back-to-work legislation late in the day to end the strike by 4,800 CP workers.
Mediated contract talks between Canada’s second-largest railway and the Teamsters union representing locomotive engineers and conductors collapsed Sunday. Pensions, as well as work rules and fatigue management have been major points of contention in the bargaining process. CP shares lost 47 cents to $76.70.
The energy sector was ahead as Suncor Energy climbed 35 cents to $29.22.
The base metals sector dipped as the Chinese report helped push copper two cents higher to $3.47 U.S. a pound. China is the world’s biggest consumer of the metal, which in turn is largely viewed as an economic barometer because it is used in so many industries. Teck Resources was ahead 31 cents to $31.53.
The gold sector was down, though Barrick Gold Corp. rose 33 cents to $41.57.
Among financials, Royal Bank climbed 41 cents to $50.76.
Techs were flat with Research In Motion Ltd. shares down nine cents to $11.25 following a report that the BlackBerry maker is preparing for a major restructuring. The Globe and Mail reported that RIM could end up cutting at least 2,000 jobs worldwide. It said the announcement could come just before RIM reports quarterly results on June 2.
On Friday, the Federal government reported that improved economic conditions allowed it to cut its deficit by almost $11 billion in the just completed fiscal year.
Early reports show the deficit stands at $23.5 billion for the 2011/2012 fiscal year, lower than projected both in the March budget and in last fall's economic update.
The Department of Finance was quick to note that the numbers are preliminary and that final results won't be known for months.
Surveys showed Greece's New Democracy party came first in all six opinion polls published on the weekend. That party backs the tough austerity measures that have made it possible for the country to exist on international bailouts.
The survey results were released three weeks before Greeks return to the polls after May election results proved inconclusive. But markets were unnerved after political parties opposed to the bailout terms received unexpectedly high support, raising worries that Greece could exit the euro-zone.
ON BAYSTREET
The TSX Venture Exchange gained 13.27 points to 1,322.54.
All but three of the 14 Toronto subgroups had turned lower by lunch time. Industrials faded 0.9%, while gold tailed off 0.6% and materials fell 0.5%.
The two gainers were in health-care, stronger by 0.8%, and energy, up 0.2%. Information technology issues were flat at midday, as indicated.
ON WALLSTREET
American markets are closed Monday for the Memorial Day holiday.
