The Toronto stock market was in for a lower open Monday amid major acquisition activity in the mining sector and uncertainty about the impact of big U.S. automatic spending cuts that took effect Friday.
The S&P/TSX composite index dropped 48.71 points to finish Friday at 12,773.12
The Canadian dollar faded 0.09 cents to 97.25 cents U.S. Friday
On the corporate front, Aurizon Mines Ltd. has received a friendly $796-million takeover offer from U.S.-based silver, gold and metals producer Hecla Mining Co. Hecla’s offer values the Vancouver-based miner at $4.75 per share, 40 cents per share above Aurizon’s closing stock price on Friday.
The offer announced by Hecla is also 10 cents per share above a hostile takeover bid for Aurizon from Alamos Gold Inc., which had been rejected as too low.
In other corporate news, the Bank of Montreal has lowered its posted rate for a five year fixed mortgage to 2.99% from the current 3.09%.
The move prior to the major spring buying season comes after Canada Mortgage and Housing Corp. warned of a slowdown in the housing sector, saying new housing construction is expected to be lower this year due to moderate economic and employment growth in the second half of 2012.
ON BAYSTREET
The TSX Venture Exchange slipped 13.27 points Friday to 1,120.09
ON WALLSTREET
Worries about global economic growth could make for a somber start to the week, with investors weighing the impact of spending cuts, China's latest move to cool its property market and uncertainty about Europe.
Futures for the Dow Industrials faded 17 points, or 0.1%, to 14,057. Futures for the S&P 500 dropped 1.8 points, or 0.1%, to 1,514.70, and futures for the NASDAQ fell six points, or 0.2%, to 2,742.75.
With no major corporate or economic reports on tap, markets will be waiting for any news of a compromise on the automatic spending cuts in Washington. Analysts fear that the $85 billion U.S. in cuts that went into effect Friday, while unlikely to be felt immediately, could take a bite out of economic growth this year.
Investors will get some readings on America's current macroeconomic health later this week, with reports due from the government on productivity and the job market. The monthly report on payrolls and the unemployment rate comes out on Friday. Also, the European Central Bank will be releasing its Governing Council's monetary policy decisions on Thursday.
Chinese stocks tumbled earlier Monday, as Beijing announced new measures to avert a real estate bubble, and European stock markets followed, with indexes mostly weaker. The Chinese government holds its annual parliament meetings this week.
Oil prices jettisoned $1.28 to $90.77 U.S. a barrel
Gold prices faded 70 cents an ounce to $1,577.40 U.S.
