The Toronto stock market was lower Monday as investors locked in some profits from last week's solid gains.
The S&P/TSX composite index fell 77.84 points to greet lunch hour at 12,462.97, giving back a good-sized chunk of last week's advance of almost 2%
The Canadian dollar nipped up 0.04 cents to 101.39 cents U.S.
The energy sector was down as Suncor Energy shed 47 cents to $33.11 and Talisman Energy was 25 cents lower to $11.64.
The gold sector slipped as Agnico Eagle Mines faded 71 cents to $49.68 and Barrick Gold Corp. declined 39 cents to $33.75.
Gold prices have suffered in recent days because of uncertainty about Fed intentions. Quantitative easing has supported bullion prices because of worries the program would drive inflation higher.
March copper dipped two cents to $3.67 U.S. a pound and the base metals sector moved down. First Quantum Minerals dropped 30 cents to $21.57 while Thompson Creek Metals gained 17 cents to $4.44.
The TSX financial sector was down even as global regulators eased new rules obliging lenders to set capital aside. The so-called Basel III rules are a set of new international standards to make sure banks don’t fall back into the sort of trouble that caused the 2008 financial crash.
On Sunday, the officials setting those rules delayed the date by which certain amounts of cash had to be readily available.
On the TSX, TD Bank declined 62 cents to $82.18 while Royal Bank moved down 43 cents to $60.64
Air Canada and WestJet Airlines Ltd. said their load factors were at records in December and for all of 2012 on better traffic and capacity results. Air Canada shares opened up 5% but WestJet shares are flat.
On the economic front, the Ivey purchasing managers’ index expanded more than expected in December, after contracting for the first time in five months in November. The index rose to 52.8 in December from a reading of 47.5 in November.
A figure above 50.0 indicates industry expansion, below indicates contraction.
ON BAYSTREET
The TSX Venture Exchange slid 0.92 points to 1,227.30
All but one of the 14 Toronto subgroups moved earthward, weighed mostly by gold, off 1%, materials, sliding 0.9%, and consumer staples, fading 0.8%.
Health-care stocks gained 0.5%.
ON WALLSTREET
U.S. stocks fell early Monday, as investors remain focused on Washington and await corporate results later this week.
The Dow Jones Industrial Average lost 75.10 points to approach noon Monday at 13,360.10
The S&P 500 deducted 7.55 points to 1,458.92. The Nasdaq Composite descended 12.36 points to 3,089.30
Bank stocks were in focus after the Basel Committee on Banking Supervision on Sunday watered down some of the more stringent rules for banks, which would have required lenders to hold back cash they could use for lending. The rules were originally proposed to help strengthen banks in the event of another global financial crisis.
U.S.-listed shares of Deutsche Bank and UBS were higher.
Shares of Bank of America also rose after it announced a $10.3-billion U.S. settlement with Fannie Mae to resolve repurchase claims on mortgage loans that were originated before December 31, 2008.
Meanwhile, aluminum producer Alcoa will be the first major firm to report fourth-quarter earnings after the closing bell Tuesday. Wells Fargo will release its results Friday.
Overall, earnings for the companies in the S&P 500 are expected to rise 3.3% in the fourth quarter compared with the same period in 2011, according to S&P Capital IQ.
Investors welcomed a compromise deal on the fiscal cliff, but lawmakers delayed many of the most contentious decisions on spending cuts. Officials in Washington are now gearing up for a fight over the debt ceiling.
If the nation's borrowing limit isn't raised by late February or early March, the United States runs the risk of defaulting on its obligations because the Treasury would no longer have enough money available to pay all the country's bills.
Prices on the 10-year U.S. Treasury note were higher Monday noon, lowering yields to 1.90% from Friday’s 1.91%
Oil prices took on 14 cents to $93.23 U.S. a barrel.
Gold prices dipped 50 cents an ounce to $1,648.40 U.S.
