The Toronto stock market shed some of the pessimism that characterized trading early Monday as concerns about a controversial new levy on bank deposits by the Mediterranean island nation of Cyprus unsettled financial markets around the globe.
The S&P TSX index was down 48.27 to end Monday at 12,781.76
The Canadian dollar picked up 0.06 cents to 97.83 cents U.S.
Copper took a significant hit from the concerns in Europe, with the May contract losing 9.3 cents to settle at $3.43 a pound. In the base metals sector, Capstone Mining declined seven cents to $2.35, while Taseko Mines gave back 11 cents to $2.96
In the gold sector, one of the few climbers, China Gold Resources gained 20 cents, or 5.4%, to $3.90, while Alacer Gold also moved ahead 20 cents, or 5.4%, to $3.91
The health-care sector made marginal gains as Valeant Pharmaceuticals Inc. picked up 90 cents to $72.09
The metals sector took it on the chin, with Lundin Mining losing 17 cents to $4.69
The energy sector also fell back, with Petrobank Energy and Resources 63 cents to $22.21
In corporate developments, Bombardier Transportation is denying a European newspaper report that it faces large penalties for the late delivery of 59 double-decker inter-city trains ordered in 2010 by Swiss Federal Railways.
The publication Der Sonntag, quoting unidentified sources, said Bombardier faces at least $487 million U.S. in penalties for delivering the trains two years late.
Bombardier shares were down 10 cents to $4.18.
Speaking of things economic, Statistics Canada reported this morning that non-residents acquired $13.3 billion of Canadian securities in January, most of them corporate debt instruments. Meanwhile, Canadian investors reduced their holdings of foreign securities by $1.2 billion, ending a four-month string of increases.
ON BAYSTREET
The TSX Venture Exchange subsided 5.37 points to 1,111.78.
All but four of the 14 Toronto subgroups remained lower, weighed by the metals and mining group, off 1.4%, while energy stepped back 1.1% and global base metals dipped 1%.
The four gainers were led by gold, up 0.8%, health-care, ahead 0.5%, while materials inched up 0.03%.
ON WALLSTREET
U.S. stocks recovered – somewhat -- from an early morning sell-off Monday as investors shook off concerns about a controversial bailout and bank tax in Cyprus.
The Dow Jones Industrials remained negative 62.05 points to 14,452.10
The S&P 500 index was 6.53 points short of breakeven to 1,552.17. The tech-heavy NASDAQ Composite moved down 11.48 points to 3,237.59.
Shares of Wells Fargo, Citigroup, Bank of America and JPMorgan Chase fell amid general turmoil in the banking sector.
JC Penney shares rallied after analysts at ISI Group suggested the troubled retailer could raise $10.8 billion U.S. by leasing space in 300 of its stores as part of a real estate investment trust.
Chesapeake Energy shares bounced back from an earlier decline after the company was downgraded on valuation concerns. Chesapeake said late Friday that it would continue its attempt to buy back $1.3 billion U.S. of its bonds.
Shares of Carnival Corp. slid 2%, after the cruise line issued a weak sales forecast for the year on Friday. The company has had a string of mechanical issues over the last several weeks.
Constellation Brands shares rallied after the Justice Department agreed late last week to give Anheuser-Busch InBev and Modelo Group more time to negotiate the terms of their merger.
The European Union unveiled a €10-billion plan early Saturday to rescue Cyprus' outsized banking sector and avoid a default. Though the bailout is relatively small, the EU has required a one-time tax of 6.75% on bank deposits of less than €100,000 and 9.9% for those over that amount.
Cypriots rushed to ATMs as the country tried to win parliament support for the plan. While euro-zone leaders stressed that Cyprus is a unique case, investors worry that depositors in other financially weak European nations might face similar bailout plans in the future.
Early Monday, Cypriot leaders said a vote on the plan has been delayed until Tuesday.
Bank stocks slumped around the globe. National Bank of Greece, Banco Santander and Barclays were all sharply lower.
Prices on the 10-year U.S. Treasury spiked, lowering yields to 1.96% from Friday’s 2%. Treasury prices and yields move in opposite directions.
Oil prices gained 21 cents to $93.66 U.S. a barrel.
Gold prices gained $11.30 to $1,603.90 U.S. an ounce.
