The Toronto stock market moved lower Monday following weekend reports on the latest high-level talks aimed at resolving the "fiscal cliff" stalemate in Washington.
The S&P/TSX composite index was 15.37 points lower Monday to close at 12,281.35
The Canadian dollar hiked 0.23 cents to 101.67 cents U.S.
March copper was down 1.7 cents at $3.68 U.S. a pound. In the metals sector, Teck Resources shed 25 cents to $35.03.
In corporate developments, copper miner Inmet Mining Corp. says it has yet to receive the increased $5.1-billion takeover bid that was announced by First Quantum Minerals Ltd. on Sunday. Inmet is urging shareholders to withhold taking action until it can evaluate the details. Inmet shares rose 4.3% to $72.85, while First Quantum dropped 4% to $20.11
TSX financial stocks dropped as Sun Life Financial said it has agreed to sell its U.S. annuity unit and certain life insurance businesses for $1.35 billion U.S. to Delaware Life Holdings, a company owned by shareholders of Guggenheim Partners. Sun Life shares dropped $1.09, or 3.9%, to $26.74.
Shares of Research In Motion were down after the company said its new BlackBerry 10 operating system is undergoing a invitation-only user testing at 120 select government and private-sector customers across various industries. The company's stock was down 22 cents to $13.66.
On the economic beat, Statistics Canada reported this morning that foreigners acquired $13.3 billion of Canadian securities in October, led by corporate and government bonds. On the other side of the coin, Canadian investors added $3.2 billion of foreign securities to their portfolios, also focusing on bonds in October.
Elsewhere, the Canadian Real Estate Association now projects 456,300 units will be sold in 2012, half a percentage point below last year's level. The Canadian national average home price is projected to rise by 0.3% to $363,900 in 2012.
ON BAYSTREET
The TSX Venture Exchange gained 1.37 points to 1,184.99
Seven of the 14 Toronto subgroups were lower, weighed mostly by metals and mining, down 0.9%, materials, sliding 0.7%, and information technology, off 0.6%.
The half-dozen gainers were led by health-care, haler by 0.8%, utilities, stronger by 0.5%, and consumer discretionaries, taking on 0.4%.
Energy stocks were flat by the closing bell.
ON WALLSTREET
Stocks rose Monday on hopes a deal is taking shape in Washington to resolve the fiscal cliff.
The Dow Jones Industrial Average surged 100.38 points Monday to conclude the day at 13,225.40.
The S&P 500 acquired 16.78 points to 1,430.36. The Nasdaq Composite jumped 39.27 points to 3,010.60
Shares of big banks and housing stocks were among the best performers. Bank of America led the Dow. JPMorgan, Goldman Sachs, Citigroup, Morgan Stanley and Wells Fargo all gained. Retailer Home Depot was the second best gainer on the Dow, while builders Pulte Group and DR Horton led the S&P 500.
The gains came as investors welcomed signs of movement in the weeks-long stalemate between President Obama and Congress over tax hikes and spending cuts set to kick in automatically on Jan. 1, widely known as the fiscal cliff.
House Speaker John Boehner has offered to extend the debt limit for a year in order to reduce the deficit, a source told the media.
Over the weekend, Boehner suggested he was open to including higher tax rates on the wealthiest Americans.
The White House, which has called for higher tax rates on top earners, said the offer didn't go far enough but described it as "progress."
In company news, Sprint announced it will buy out the rest of Clearwire for $2.2 billion U.S. early Monday, after making an offer last week. Clearwire stock fell 14%, while shares of Sprint were flat.
Caribou Coffee Company agreed to be taken over by Joh. A. Benckiser Group, a German holding company that also bought Peet's Coffee & Tea earlier this year. The deal is valued at $340 million U.S., according to a joint statement. Caribou's stock soared 30%.
Apple rose nearly 2% after slipping below $500 U.S. in pre-market action. Apple has dropped significantly over the past four months.
Citigroup cut its rating on the stock to "neutral" from "buy." Analysts at Cannacord Genuity and Mizuho Securities both lowered their price targets for Apple shares, citing weaker-than-expected sales of iPhones and iPads.
AIG said it would sell the remainder of its Asian unit, AIA, in deal that could be worth $6.5 billion U.S. for the global insurance company. Shares rose 3%.
Shares of Smith & Wesson fell more than 5% amid speculation the U.S. government will impose stricter gun laws in the wake of a mass shooting in Connecticut.
Economically speaking, the New York Federal Reserve reported manufacturing conditions in the area have worsened in December. The index fell more than expected, to -8.1, from -5.2 in November.
Treasury prices were down, raising yields on the 10-year note to 1.76% from Friday’s 1.70%. Treasury prices and yields move in opposite directions.
Oil was up 15 cents on the day at $87.35 U.S. a barrel.
Gold prices inched ahead 50 cents at $1,698.70 U.S. an ounce.
