Toronto stock markets opened lower on Monday as a potential U.S. government shutdown coupled with political tensions in Italy dragged investor sentiment lower.
The S&P/TSX composite index was down 79.88 points to begin the week at 12,764.20
The Canadian dollar gained 0.26 cents to 97.18 cents U.S.
Pacific Rubiales Energy Corp, Colombia's largest private oil company, said it will buy compatriot oil producer and explorer Petrominerales Ltd for $1.6 billion, financing the deal with cash and loans. Rubiales stock tumbled $1.17, or 5.4%, to $20.47.
Canaccord Genuity cut the rating on Martinrea International Inc to hold from buy and target price to $11.50 from $14.75 on outlook and management risk. Martinrea shares swooned $1.70, or 13.9%, to $10.50.
RBC cut the target price on Midas Gold Corp. to $1.60 from $6 to reflect updated operating and project financing assumptions for Golden Meadows in the current weak gold price environment. Midas stock climbed four cents, or 4.8%, to 87 cents.
On the economic calendar, Statistics Canada reported that its consumer price index grew 0.6% in July, recovering from a decline of 0.5% in June. The nation’s number-crunchers also reported that their industrial product price index gained 0.2% in August, while the raw materials price index hiked 0.9% during the same month.
ON BAYSTREET
The TSX Venture Exchange dipped 10.08 to 942.78
All but one of the 14 Toronto subgroups were lower to start the day, weighed mostly by metals and mining stocks, down 1.8%, global base metals, down 1.6%, and energy, sliding 1.1%.
The lone gainer was in real-estate, taking on 1.2%.
ON WALLSTREET
Investors don't want to wait and see if lawmakers can reach a deal to avoid a U.S. government shutdown at midnight, and went on a selling spree.
The Dow Jones Industrials began the day off 126.45 points to 15,131.80.
The S&P 500 index faded 13.50 points to 1,678.25. The NASDAQ fell 28.22 points to 3,753.38
Despite Monday's slide, the three major indexes are still up between 15% and 24% for the year. The Dow and S&P 500 are up over 3% in September alone, and hit record highs just two weeks ago. All three indexes are up for the quarter, led by the NASDAQ, which has risen 11%.
Shares of Apple dropped more than 1% ahead of CEO Tim Cook's anticipated lunch meeting with activist investor Carl Icahn.
Social media stocks Facebook, Zynga, and LinkedIn fell Monday.
There is increased chatter that Twitter may file its financial statements with the Securities and Exchange Commission this week, although it's not clear if that will happen if the government shuts down.
Some investors believe that Twitter's upcoming initial public offering could steal some momentum from other social media stocks since it is assumed that Twitter's growth will be very strong.
Prices for the 10-year U.S. Treasury were flat, keeping yields at Friday’s 2.61%
Oil prices deflated $1.42 to $101.45 U.S. a barrel.
Gold prices gave back $12.30 at $1,325.90 U.S. an ounce.
