The Toronto stock market edged lower in late Monday trading as continuing strength in financials was unable to offset weakness in metals and mining stocks following a disappointing economic report from China.
The S&P/TSX composite index dipped below breakeven 4.84 points to end Monday at 15,383.59
The Canadian dollar fell 0.10 cents to 79.42 cents U.S.
The metals and mining sector the biggest loser on the TSX, following a report from China that imports fell 12% in March compared with a year earlier, while exports declined 15%.
The May copper contract was down two cents at $2.72 U.S. a pound, and Teck Resources slid 66 cents, or 3.8%, to $16.64, while Sherritt International shares descended eight cents, or 3.7%, to $2.11.
First Quantum Minerals also got bruised, losing 55 cents, or 3.4%, to $15.64.
News that Canadian gold miners Alamos Gold and AuRico Gold would merge in a deal valued at about $1.5 billion, sent Alamos up 46 cents, or 6.2% to $7.87, and AuRico up 31 cents, or 8.2%, to $4.09.
One of the few bright spots came in consumer staples, where Cott Corporation moved ahead 25 cents, or 2.1%, to $12.02
ON BAYSTREET
The TSX Venture Exchange lost 3.26 points to 695.62
All but three of the 14 Toronto subgroups were lower, with metals and mining stumbling 2.5%, global base metals capsizing 1.6%, and gold 1.1% to the bad.
The three gainers were consumer staples, stronger by 0.7%, information technology inching up 0.2%, and financials eking up 0.1%.
ON WALLSTREET
U.S. stocks closed lower on Monday, ending three consecutive days of gains as investors remained cautious ahead of earnings season.
The Dow Jones Industrials dumped 80.61 points to close at 17,977.04, with JPMorgan Chase leading gains and General Electric the greatest laggard.
The S&P 500 index was lower 9.58 points to 2,092.48, with industrials the greatest of nine declining sectors and financials the only advancer.
The NASDAQ index was lower 7.73 points to 4,988.25
Under pressure from the strong dollar and low oil prices, corporate profit expectations are significantly negative for the first time in six years, with Thomson Reuters reporting a likely 2.9% drop in S&P 500 net income.
General Electric closed down 3%, pressuring the Dow and S&P 500 industrials. The stock surged 10.8% on Friday after the announced restructuring of GE Capital and stock buybacks.
Qualcomm traded mildly lower following news that activist investor Jana Partners has held "constructive discussions" with the tech firm about potentially spinning off its chip unit from its patent-licensing business.
First-quarter earnings season officially kicks off on Tuesday with blue chips JPMorgan reporting before the bell and Intel after the close.
In U.S. corporate news, Sears struck a 50/50 joint venture deal with Simon Property, designed to unlock the real estate value in the 10 properties it will contribute to the venture. The news follows a similar deal with another mall operator, General Growth Properties, earlier this month.
Apple Watch customers will have to wait longer than expected for delivery, with Apple having pushed back shipping times to May and June after the new product saw a surge in orders. A Bank of America report estimates Apple will ship about four million Apple Watches during the June quarter.
Pandora gained after a Wall Street Journal report said rival Spotify was near a deal to raise $400 million U.S. in a round that values it at $8.4 billion U.S.
The United States ended the month of March with a budget deficit of $53 billion U.S., up 43% from the same period last year, the U.S. Treasury Department said on Monday.
Prices for 10-year U.S. Treasuries gained back lost ground, lowering yields to 1.93% from Friday’s 1.95%. Treasury prices and yields move in opposite directions.
Oil prices were better 31 cents to $51.95 U.S.
Gold prices faltered $4.90 to $1,199.70 U.S.
