Canadian stocks fell Monday, with energy and mining shares pacing broad-based declines as weak economic figures from China and the U.S. added to lingering worries about slowing global growth.
The S&P/TSX Composite Index was off its lows of the day, but still fell 25.43 points short of breakeven, to end the session at 11,335.77
The Canadian dollar traded lower by 0.02 to 96.19 cents U.S.
From China, a reading of 55.2 in the non-manufacturing Purchasing Manager’s Index for May was down from 56.1 in April. The report cut into expectations that activity in the services sector could help offset sluggishness in manufacturing.
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 and China is seen as one of the major markets for the metal. The tidings affected prices for Teck Resources, which fell 30 cents, or nearly 1%, to $30.46.
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. BCE shares climber 23 cents to $41.12
Among Toronto’s volume movers, Barrick Gold Corp. declined three cents to $43.62, Talisman Energy fell seven cents to $10.60 and Goldcorp gained 25 cents to $41.18. But shares of Yamana Gold Inc. turned higher by 22 cents or 1.4% to $16.45.
In other moves in Toronto trading, shares of BlackBerry maker Research In Motion fell 68 cents or 6.4% and reached a 52-week low at $10.00.
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 was released today.
ON BAYSTREET
The TSX Venture Exchange dipped 13.22 points to 1,278.37. The Nasdaq Canada index dumped 4.33 points to 347.26
All but three of the 14 Toronto subgroups remained negative on the day. Real-estate and information technology groups each shed 1.6%, while health-care lost 1.3%.
The three gainers were gold, up 0.6%, utilities, ahead 0.3%, and materials, inching up 0.1%.
ON WALLSTREET
Worries about a global growth slowdown and uncertainty surrounding Europe's debt crisis kept investors on edge and stock trading choppy Monday.
The Dow Jones Industrials gave back 17.11 points to conclude trading at 12,101.50
The S&P 500 was 0.14 points lower at 1,277.90. The tech-rich Nasdaq Composite Index fought its way higher, however, by 12.53 points to 2,760.01
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.
Groupon shares dropped more than 7% 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 lockup 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 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 was 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 1.53% 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 92 cents Monday to $84.15 U.S.
Gold futures for August delivery lost $2.30 to $1,619.80 U.S. an ounce.
