World stock markets sold off heavily Monday as high stakes negotiations between Greece and its many creditors entered their 11th hour with no deal in sight.
The S&P/TSX composite index plummeted 317.94 points, or 2.2%, to close the day at 14,490.15. Both Toronto and New York stock indices have now wiped out all of their gains for the year.
The Canadian dollar skidded 0.34 cents to 80.70 cents U.S.
Canadian markets are to be shuttered Wednesday for Canada Day.
All sectors of the Toronto market went for a dip Monday, most notably information technology shares, as Wi-Lan shares faltered 17 cents, or 5.8%, to $2.76, and Sandvine Corporation gave back 17 cents, or 4.5%, to $3.60
In the real-estate sector, Brookfield Asset Management settled $1.88, or 4.2%, to $27.28, and Dream Office REIT moved backwards 84 cents, or 3.4%, to $24.11.
Financials took it on the chin, too, as Canaccord Financial Group surrendered 32 cents, or 4.1%, to $7.57, and Genworth MI Corporation fell $1.29, or 3.8%, to $32.75.
Greece's banks and stock market were closed and were expected to remain so until after the July 5 snap referendum called by Greek Prime Minister Alexis Tsipras on further austerity demanded by euro-zone partners
A Reuters poll showed that strategists expect Canadian stocks to edge higher in the second half of the year before picking up further in early 2016.
On the economic beat, Statistics Canada’s industrial product price index increased 0.5% in May, mainly because of higher prices for energy and petroleum products, while its raw materials price index increased 4.4% during the same month, largely as a result of higher prices for crude energy products.
ON BAYSTREET
The TSX Venture Exchange shed 12.29 points to 667.09.
All 14 TSX subgroups pointed downward on the day, with information technology falling 2.7%, while real-estate and financials each off 2.6%.
ON WALLSTREET
U.S. stocks plunged nearly 2% or more on Monday with the Dow and S&P 500 wiping out gains for the year on escalating tensions between Greece and its creditors.
The Dow Jones Industrials moved south 350.33 points, or 2%, to 17,596.35, with Visa and DuPont leading nearly all blue chips lower.
The S&P 500 index swooned 43.86 points, or 2.1%, to 2,057.63, with financials tumbling about 2.4% to lead all 10 sectors lower. The index fell into negative territory for the year.
The NASDAQ hurtled earthward 122.55 points, or 2.4%, to 4,957.96.
In corporate news, coal stocks Consol Energy and Peabody Energy surged on a U.S. Supreme Court ruling against the Obama administration that said it failed to consider costs when deciding to regulate mercury pollution from power plants.
Gannett split in two, effective today. The existing parent company is renamed Tegna and will own 46 broadcast stations as well as the Cars.com and Careerbuilder.com websites. The newspaper operations, including USA Today, are spun out into a new company which will carry the Gannett name and ticker symbol.
J.B. Hunt Transport Services will join the S&P 500 this week, replacing Integrys Energy Group. Integrys is being acquired by Wisconsin Energy in a deal that's expected to close this week.
The only economic data out Monday is pending home sales, which showed an increase of 0.9% in May, slightly below expectations.
Investors will closely watch Thursday's non-farm payrolls report for further indications on the timing of a rate hike. Markets are closed Friday in observance of the July 4 holiday.
In what one source called an indication of "failing leadership," Greek Prime Minister Alexis Tsipras called a referendum for July 5, in which Greeks will vote on whether to accept the austerity rescue package previously offered by Athens' creditors.
Greece's banks and main stock exchange are closed this week to prevent a run on financial institutions. The central bank has also recommended a 60-euro ($66 U.S.) limit on withdrawals from cash machines.
Prices for 10-year U.S. Treasuries zoomed, lowering yields sharply to 2.32% from Friday’s 2.47%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.47 a barrel to $58.16 U.S.
Gold prices gained $6.40 at $1,179.60 U.S. an ounce.
