The Toronto stock market endured a lower open Monday, amid one 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 48.13 points at Monday’s open to 12,724.99
The Canadian dollar slipped 0.08 cents at 97.26 cents U.S.
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. Aurizon shares hiked 21 cents, or 4.8%, to $4.56.
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. BMO shares lost nine cents to $63.99
ON BAYSTREET
The TSX Venture Exchange slipped 6.69 points to 1,113.40
All but one of the 14 Toronto subgroups were down to begin the week, with metals and mining trailing Friday’s close by 1.1%. Their cousins in global base metals were down 1%, likewise the materials sector.
Only telecoms held out against the negative tide, eking up only 0.01%.
ON WALLSTREET
U.S. stocks opened modestly lower Monday morning, following a sharp selloff in Chinese stocks on concerns about a property bubble in the world's second biggest economy.
The Dow fell ditched 37.40 points to begin the day and the week at 14,052.30.
The S&P 500 index dropped 1.73 points to 1,516.47. The tech-heavy NASDAQ Composite slumped 4.53 points to 3,165.22.
There was little in the way of corporate news Monday. But shares of Apple continued to slide, hitting another 52-week low. The stock is now down 20% so far this year.
Investors have been somewhat even-tempered about the forced spending cuts that have begun to take effect after budget talks in Washington broke down last week.
Some analysts fear that the $85 billion U.S. in cuts, which will not be felt immediately, could take a big bite out of economic growth this year. But many investors are hopeful that lawmakers will eventually replace the arbitrary, across-the-board cuts with something more targeted.
Chinese stocks tumbled Monday, as the government in Beijing announced new measures to avert a real estate bubble.
Prices on the 10-year U.S. Treasury hesitated a bit, raising yields to 1.86% from Friday’s 1.85%. Treasury prices and yields move in opposite directions.
Oil prices slipped 24 cents to $90.44 U.S. a barrel.
Gold prices revived $3.60 to $1,575.90 U.S. an ounce.
