The Toronto stock market was negative as noon rolled around Monday, as investors grappled with the increasing concerns about global recession.
The S&P/TSX Composite Index capsized 117.73 points, or 1%, to break for lunch at 11,243.47
The Canadian dollar traded lower by 0.23 to 95.98 cents U.S.
The July copper contract on the Nymex fell two cents to $3.29 U.S. a pound. Copper is widely viewed as a key economic barometer as it is used in so many industries.
Over the weekend, an agreement involving BCE Inc. and its financial backers will see Bell Canada add a minority ownership stake in 11 data centres in Alberta, British Columbia and Ontario to its holdings. The companies say the deal is valued at $1.1 billion, including assumed debt.
On Tuesday, the Bank of Canada is widely expected to leave its key rate unchanged at 1%. But Bank of Canada governor Mark Carney could also end up discouraging any thought of a rise in interest rates this year because of slowing economic condition, as well as worries about the future of the euro-zone and the health of banks in the region.
No major Canadian economic data is scheduled for release today.
ON BAYSTREET
The TSX Venture Exchange dipped 12.12 points to 1,279.47. The Nasdaq Canada index dumped 5.75 points to 345.84
All 14 Toronto subgroups remained negative midday. Energy and information technology each shed 1.3%, while materials lost 1.2%.
ON WALLSTREET
Worries about a global growth slowdown and uncertainty surrounding Europe's debt crisis kept investors on edge and stock trading choppy early Monday.
The Dow Jones Industrials gave back 56.88 points to greet noon at 12,061.69
The S&P 500 erased 8.89 points to 1,269.15. The tech-rich Nasdaq Composite Index deducted 16.84 points to 2,730.64.
U.S. stocks tumbled more than 2% Friday in the worst trading day of the year. The Dow erased all its gains for 2012, and the S&P 500 and Nasdaq moved into correction territory -- down more than 10% from the year's highs.
Shares of Facebook, which have gotten hammered since the company's IPO, continued to fall Monday.
Groupon shares dropped more than 3% after falling sharply Friday. The online discount service, which has been dogged with questions about its accounting practices since its initial public offering in November, ended its lock-up period Friday, meaning that insiders who own shares are now able to sell them.
Shares of Chesapeake Energy rose after the embattled natural gas company said it is replacing four members of its board of directors in response to urging from two of its largest shareholders, including Carl Icahn.
Shares of AutoNation, the largest U.S. car dealership, jumped after it reported that its May new car sales rose 45%. That was almost twice as good as the 26% rise in industry wide U.S. car sales reported by major automakers Friday. But the industry-wide sales pace was generally less than forecast as it came in at the weakest pace of 2012.
After markets were brutalized last week, investors have some reason to believe that European leaders might be willing to make tough choices to stave off larger problems in the region.
Anxieties over the health of the Spanish banking system and the possibility that Greece could soon exit the euro remain high.
There are also worries about slowing growth in emerging markets such as China and India. Recent reports out of China last week showed the manufacturing sector contracted more than expected in May.
Economically speaking, factory orders declined 0.6% in April. The report was weaker than the 0.1% increase expected by economists. The March decline was revised to a deeper 2.1% drop.
The price on the benchmark 10-year U.S. Treasury finally sagged a bit, raising yields to 1.51% from Friday’s all-time low of 1.47%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil regained 15 cents at noon Monday to $83.38 U.S.
Gold futures for August delivery lost $2.60 to $1,614.60 U.S. an ounce
