The Toronto stock market lost ground Monday noon, as commodities backed off and economic data out of Europe offered little motivation.
The S&P/TSX Composite index fell 27.06 points to approach noon at 11,739.30
The Canadian dollar added 0.09 cents to 99.65 cents U.S.
In Canada, the banking sector was in the spotlight after Standard & Poor's Ratings Services cut its outlook on seven Canadian banks on Friday to negative from stable.
The move, which left the banks' ratings intact but suggested they may be under some pressure in future, was made over concerns about unsustainably high home prices and consumer debt levels.
The New York debt-rating firm cut the credit ratings of credit ratings of Royal Bank of Canada, Toronto-Dominion Bank,
Bank of Nova Scotia, National Bank of Canada, Laurentian Bank of Canada, Home Capital Group Inc. and Central 1 Credit Union.
September copper moved back two cents to $3.40 U.S. a pound.
ON BAYSTREET
The TSX Venture Exchange faltered 6.27 points to 1,184.37. The Nasdaq Canada index faded 3.24 points to 335.06.
All but four of the 14 Toronto subgroups lost territory by midday. Metals and mining tailed off 1.5%, global base metals dipped 0.8%, and utilities deferred 0.7%.
The three gainers were gold, up 0.7%, telecoms, ahead 0.3%, and consumer staples, ahead 0.1%. Real-estate issues were unchanged by noon.
ON WALLSTREET
Investors remained unwilling to place big bets Monday, ahead of two big meetings by U.S. and European central bankers.
The Dow Jones industrial average sank 20.47 points, to break for lunch Monday at 13,055.20
The S&P 500 dropped 3.35 points to 1,382.62. The Nasdaq docked 12.72 points to 2,945.37.
HSBC said it put aside about $2 billion U.S. to compensate U.K. customers for misselling of payment-protection insurance, and to pay costs in the U.S. related to accusations it failed to prevent billions of dollars worth of money transfers linked to drug cartels and terrorist groups.
Apple and Samsung begin their patent battle in court Monday. Apple filed a lawsuit against Samsung last year alleging that the company's smartphones and tablets are knockoffs of its iPhone and iPad, and an infringement on its patents. Apple is seeking $2.5 billion U.S. in damages.
Expectations are high for the U.S. Federal Reserve and the European Central Bank to announce new measures to boost the economy when they meet later this week. The Fed's two-day meeting culminates in an announcement on monetary policy Wednesday.
Once the Fed wraps up, the E.C.B. will take centre stage, with its Governing Council meeting in Frankfurt on Thursday. Last week E.C.B. President Mario Draghi said the central bank would do "whatever it takes" to preserve the euro. Investors now want to see if he'll put those words into action.
While the central bank meetings will be the forefront, investors will also be digesting all the earnings results that have come out over the past couple of weeks, and those that are due in the week ahead, said one expert.
Nearly 60% of the S&P 500 companies have already reported, and results have been lackluster. Excluding the financials sector, second quarter earnings are expected to decline 0.4%, according to Thomson Reuters, marking the end to a 10-quarter winning streak.
The price on the benchmark 10-year U.S. Treasury gained a bit, lowering yields to 1.51% from Friday’s 1.56%. Treasury prices and yields move in opposite directions.
Oil for September delivery dropped 26 cents to $89.87 U.S. a barrel.
Gold futures for August delivery rose $1.10 to $1,619.10 U.S. an ounce.
