Stocks in Toronto stubbed their collective toes early Monday, as tidings from Europe added to an air of uncertainty.
The S&P/TSX composite index stumbled 146.75 points, or 1%, to open the week at 14,397.07
The Canadian dollar lost 0.09 cents at 88.90 cents U.S.
Precision Drilling Corp, Canada's largest oil and natural gas drilling contractor, reported a better-than-expected 79% jump in quarterly profit, helped by higher pricing and drilling activity. Precision shares slid 79 cents, or 7.9%, to $9.16.
Oil explorer Ophir Energy has agreed to buy interests in seven deepwater production-sharing contracts in Indonesia from Niko Resources, building on Ophir's foray into the south-east Asian market. Niko shares gained three cents to 35 cents.
Valeant Pharmaceuticals International Inc said it is prepared to improve its offer for Allergan Inc to at least $200 per share. Valeant shares gained 24 cents to $145.45.
ON BAYSTREET
The TSX Venture Exchange dropped 7.85 points to 797.60.
All but two of the 14 Toronto subgroups were lower with energy down 3.6%, metals and mining off 1.6%, and global base metals off 1.5%
The two gainers were utilities, up 0.5%, and telecoms, up 0.2%.
ON WALLSTREET
U.S. stocks retreated on Monday, pausing after a big rally last week, as big losses in the energy and materials sector weighed on the main benchmark.
The Dow Jones Industrials tailed off 29.08 to 16,776.33.
The S&P 500 fell 6.82 points to 1,957.76. The NASDAQ index eased 14.02 points to 4,469.70.
GoPro Inc. shares retreated, extending a sharp fall from Friday, when Oppenheimer analysts initiated a sell rating on the wearable camera maker.
Merck & Co. Inc. tightened its outlook for the rest of the year as expiring patents weighed on sales. Its top line fell short, but shares edged up in pre-market.
Allergan Inc. shares rose after Valeant Pharmaceuticals International Inc. said it was prepared to improve its offer for Allergan to a value of at least $200 U.S. a share.
Health-care and energy sectors are expected to dominate investor attention this week as they deliver results.
Novavax Inc. shares surged after it said it is preparing to begin a Phase 1 clinical trial of its Ebola vaccine before the end of the year.
After the close on Monday, Twitter Inc. will report earnings.
This week, markets will focus on the Federal Open Market Committee meeting, where the central bank is expected to announce the end of quantitative easing.
Traders will be looking to see if the Fed drops the “considerable period” language in referencing its plans keeping rates low, at its two-day policy meeting, which concludes Wednesday. As several Fed officials have come out with dovish comments recently, investors largely expect that guidance to be reiterated.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.24% from Friday’s 2.27%. Treasury prices and yields move in opposite directions.
Oil prices dipped $1.36 to $79.65 U.S. a barrel.
Gold prices faltered $2.70 to $1,219.10 U.S. an ounce.
