The Toronto stock market remained above breakeven by midday on Monday as concerns about the global economy led to weakness across nearly every sector.
The S&P/TSX Composite Index had gained 40.16 points to approach noon at 11,565.06
The Canadian dollar was down 0.53 of a cent to 97.44 cents U.S.
In Canada, Yamana Gold Inc. announced the acquisition Monday of Extorre Gold Mines Ltd., a miner with a promising gold-silver project in Argentina for about $400 million.
Yamana will pay $3.50 in cash and 0.467 of a Yamana share for each Extorre share, while also saying it plans to increase its dividend by 18%. Yamana shares fell 41 cents to $15.94.
Celestica Inc. said it will wind down manufacturing services for Research in Motion over the next three to six months. Celestica says it has been working with RIM as the troubled BlackBerry maker assesses its supply chain strategy.
Celestica shares were down 3.4%, or 26 cents, to $7.35, while RIM stock rose nine cents to $11.26.
On the economic front this morning, Statistics Canada told us that offshore investors acquired $10.2 billion of Canadian securities in April, after a bit of a selloff the month before. Canadian investors' holdings of foreign securities went down by $2.7 billion, predominantly in bonds.
ON BAYSTREET
The TSX Venture Exchange picked up 1.70 points to 1,252.72. The Nasdaq Canada index moved ahead 0.57 points to 371.52
All but two of the 14 Toronto subgroups were higher by midday. Health-care stocks were 2.1% more robust, while real-estate and materials surged 0.9% each.
The lone laggard was energy, down 0.5%. Global base metal issues were flat at noon.
ON WALLSTREET
Investors see so much more to worry about throughout the global markets that U.S. stocks slipped Monday, even as an election in Greece yielded a win for the pro-bailout party.
The Dow Jones Industrials shed 27.58 points – off its lows of the day -- to break for lunch at 12,739.59
The S&P 500 was off 0.68 points, at 1,342.16. The Nasdaq Composite Index acquired 11.49 points to 2,884.29
Microsoft is expected to announce some news related to its own tablet computer Monday at an event in Los Angeles. Shares of Microsoft, which rose 2.3% in Friday trading, edged lower Monday.
Shares of footwear retailer DSW plunged 13% Monday after it warned that its fiscal second quarter earnings would come in at 60 to 64 U.S. cents a share, far below its previous guidance and a consensus forecast of 76 cents U.S. a share.
Shares of Facebook continued to rally Monday after spiking 6% Friday. The social network saw its shares rise for the second straight day Friday -- something that has happened only twice since its IPO on May 18.
An article in Monday's Wall Street Journal said decisions by Facebook lead underwriter Morgan Stanley were responsible for many of the problems with the Facebook IPO. Morgan Stanley was down 2% following that report, along with the uncertainties in Europe.
It could be a difficult day for major financial stocks, The nation's largest banks, JPMorgan Chase, Citigroup and Bank of America, were down on the uncertainty in Europe.
Overseas, the win in Sunday's Greek vote by the New Democracy party -- which supports the European bailout -- was a positive for investors. There were worries that a victory by austerity opponents would lead to a Greek debt default and a potential breaking up of the euro-zone.
But the Greek vote did little to solve mounting problems in Spain. While the election lifted markets in Asia, a rally in European stocks proved short-lived, and rising bond yields in Spain and elsewhere across Europe reflected the growing concern.
Spain's IBEX 35 index slipped 1.4%. It was led lower by leading bank stocks, an indication of investors' focus on Spanish problems.
Yields on bond debt across the continent rose, led by Spain's 10-year yield touching a euro-era record high of 7.14%. Any reading above 7% is seen as a warning sign that a nation will need a bailout by other countries in the euro-zone. Yields on Italian 10-year bonds also moved above the 6% mark.
The price on the benchmark 10-year U.S. Treasury slipped, raising yields back to Friday’s 1.59%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil faded $1.26 to $82.77 U.S.
Gold futures for August delivery fell $9.70 to $1,618.20 U.S. an ounce.
