The Toronto stock market ended the final session of January in the red as worries about European deflation and emerging markets persuaded investors to step back after a big runup.
The S&P/TSX composite index slid 40.34 points to end the day, week and month at 13,694.94
The Canadian dollar moved up 0.3 cents to 89.89 cents U.S.
The TSX is up slightly for the month, in contrast to its American brethren.
Meanwhile, TransCanada's shares gained 59 cents to $48.42 amid reports that an environmental impact study into its Keystone XL pipeline project was to be released mid-afternoon.
A final decision by U.S. President Barack Obama may not come for several months, but this study is seen as a critical step in determining whether the controversial project will go ahead.
Uranium miner Cameco is selling its share of the Bruce Power nuclear partnership in southwestern Ontario to Borealis Infrastructure for $450 million. Cameco shares were down 91 cents to $23.67.
TSX losses were paced by a substantial fall in the base metals sector as March copper in New York lost three cents to $3.19 U.S. a pound. Teck Resources dipped 41 cents to $26.80
Financials also weighed, as BMO turned south $1.31 to $68.06, and Scotiabank fell 69 cents to $61.20
The gold sector slipped, though Barrick Gold took on a penny to $21.46.
The industrials group fell after Canadian National Railway missed quarterly earnings estimates by a penny a share as results were impacted by tough winter conditions.
CN shares regained 27 cents to $59.61 even as the railway CN upped its quarterly dividend by 16% to 25 cents and RBC Capital Markets raised its rating on CN stock to outperform.
Meanwhile, CN also said that 3,000 unionized train conductors, trainpersons, yardpersons and traffic co-ordinators failed to ratify a tentative contract that was reached in October.
Internationally, Eurostat, the EU's statistics office, reported that inflation in the euro-zone fell to 0.7% in the year to January from 0.8% the previous month.
The data raised worries that the euro-zone could slip into a situation where prices are actually falling. Such deflation can hurt an economy as consumers delay purchases and businesses postpone investment.
The deflation concerns added to emerging market worries that have buffeted markets this past week.
On domestic economic matters, Statistics Canada reported that real gross domestic product grew 0.2% in November from October, up for a fifth consecutive month. The figure was 2.6% higher since November 2012.
ON BAYSTREET
The TSX Venture Exchange slipped 1.60 points to end Friday at 951.28
All but three of the 14 Toronto subgroups were lower to end the session, with metals and mining down 1.7%, global base metals regressing 1.6% and financials down 1%.
The three gainers were utilities, strengthening 0.7%, real-estate, up 0.4%, and energy, surging 0.2%.
ON WALLSTREET
January ended for equity markets the same way it began, with indices taking major hit by the final bell.
The Dow Jones Industrial Average took a header of 149.76 points, to end Friday at 15,698.85. Stocks dropped sharply during the first month of the year, with the Dow tumbling more than 5%.
That was the Dow's worst January since 2009, when stocks were still in freefall in the aftermath of the financial crisis.
The S&P 500 index skidded 11.60 points to 1,782.59. The NASDAQ dove 19.25 points to 4,103.88
The S&P 500 slipped more than 3% this month, while the NASDAQ has shed nearly 2%.
On the earnings front Friday, Mattel, Amazon, Chevron and MasterCard were all big losers on Friday after reporting results that underwhelmed investors.
Mattel shares tumbled after the toy giant reported a surprise drop in its fourth-quarter revenue, as sales of its core brands Barbie and Fisher-Price fell sharply.
Amazon missed Wall Street's earnings forecasts, sending shares sharply lower. Amazon also disclosed that it is considering doubling the membership price of Prime to $40 U.S. to cover rising fuel and shipping cost
Wal-Mart shares were flat after the discount retailer cut its guidance for the fourth quarter.
On the bright side, Google and Chipotle were all higher and hit new all-time highs following their earnings reports.
Facebook shares also rose to new all-time highs. Shares of Facebook doubled in 2013 and have continued to rise this year, as the company continues to succeed with its mobile advertising strategy. Traders are hopeful that the stock will continue to gain ground.
Zynga was also higher, but the company also announced a new round of job cuts.
Microsoft shares ticked up slightly following a Bloomberg report that the company is preparing to name executive vice president Satya Nadella as its next CEO.
Prices for 10-year U.S. Treasuries gained ground, dropping yields to 2.67% from Thursday’s 2.69%. Treasury prices and yields move in opposite directions.
Oil prices fell 74 cents to $97.49 U.S. a barrel.
Gold prices nicked up $1.30 to $1,243.50 U.S. an ounce.
