With the U.S. government shutdown into its second week, traders betrayed jitters as to how soon a default could happen, keeping gains on Canadian markets in check.
The S&P/TSX composite index moved higher 17.13 to begin the week at 12,775.78
The Canadian dollar slid 0.23 cents to 96.89 cents U.S.
BlackBerry Ltd., on the block as its smartphone business struggles, is in talks with Cisco Systems, Google Inc and SAP AG about selling them all or parts of itself, according to several sources close to the matter. BlackBerry began the day’s trading up 35 cents, or 4.4%, to $8.23.
India's customs department has cleared more than a tonne of gold, part of which was owned by Bank of Nova Scotia, at Mumbai airport after rule clarifications at a high-level meeting held last month, industry and bank officials said on Saturday. Scotiabank shares backtracked eight cents to $58.83.
CIBC raised the target price on Ag Growth International to $38 from $33 to reflect higher international backlog. Ag shares advanced six cents to $40.40.
However, CIBC cut the target price on Calfrac Well Services to $40 from $41 after the company announced that its third-quarter results will not meet its expectations. Calfrac shares dropped 44 cents to $31.55.
On the economic slate, Statistics Canada said municipalities issued building permits worth $6.3 billion in August, down 21.2% from July.
This decline followed a 21.4% increase the previous month and was the result of lower construction intentions in both non-residential and residential sectors. Market call was for a reading of negative 7.4%.
ON BAYSTREET
The TSX Venture Exchange lost 5.94 points at the outset to 949.42
Nine of the 14 Toronto subgroups began the day and week negative, weighed down by a 0.7% loss in the global base metals section, while metals and mining stocks and utilities each slumped 0.4%.
The five gainers were led by gold, up 1.7%, materials, up 0.8%, and information technology, ahead 0.7%.
ON WALLSTREET
The debt deadlock is finally starting to rattle investors.
The Dow Jones Industrials descended 79.55 points to begin trade Monday at 14,993.
The S&P 500 index lost 11.36 points to 1,679.14. The NASDAQ subtracted 14.10 points to 3,793.65
The first corporate results for the third quarter come out Tuesday, when aluminum maker Alcoa reports after the market close.
Two of the biggest banks -- Dow component JPMorgan Chase andWells Fargo report Friday morning.
Analysts fear that weak third-quarter earnings could also weigh on stock prices.
Shares of Apple rose, after the iPhone maker was upgraded by Jefferies.
Shares of BlackBerry gained 4% on rumors that new buyers are emerging for the troubled smartphone maker.
J.C. Penney's stock continued to move lower hitting lows not seen by the retailer since the late 1980s.
During the first six days of the government shutdown, investors had a relatively blase attitude toward the drama in Washington.
Now, as Congress is pushing the United States closer and closer to breaching its debt ceiling and possibly forcing the government into its first default, investors are getting scared.
The government shutdown is in day seven, and lawmakers appear no closer to resolving the impasse. That's forced investors to consider what that could mean for the markets and the global economy.
On Sunday, Treasury Secretary Jack Lew said that Congress was "playing with fire," and warned the U.S. could default in just over a week.
Analysts have started sounding alarm bells.
Last week, Bank of America analysts said that the government shutdown wouldn't impact fourth-quarter GDP growth. But over the weekend, they changed their tune and lowered growth estimates for the fourth quarter to 2% from 2.5%.
Prices for the 10-year U.S. Treasury gained ground, lowering yields to 2.61% from Friday’s 2.65%. Treasury prices and yields move in opposite directions.
Oil prices swooned $1.64 to $102.20 U.S. a barrel.
Gold prices took on $19.60 at $1,329.50 U.S. an ounce.
