Equities in Canada’s largest centre fell on Monday as financial stocks dipped amid signs of cooling in Toronto's overheated housing market and falling oil prices, weakened by concerns of a diplomatic rift in the Middle East, hurt energy stocks.
The S&P/TSX Composite Index remained negative 69.82 points – off their lows of the morning -- to move into noon hour at 15,372.93
The Canadian dollar gained 0.1 cents to 74.19 cents U.S.
Health-care was the biggest decliner, with Valeant Pharmaceuticals Inc falling 4.4% to $16.15.
Energy stocks, which briefly reversed course mid-morning, retreated again, with Cenovus Energy falling 1.6% to $11.42.
Osisko Gold Royalties rose 9.7% to $15.79 after news it will buy a precious metals portfolio from Orion Mine for $1.13 billion.
Asanko Gold declined 0.5% to $2.11 after it said its liquidity position was likely to be over $100 million by mid-2018, days after short seller Muddy Waters said the Canadian gold miner would run out of cash by next year.
Data showed housing sales in Toronto fell sharply in May, while new listings jumped, as sellers looked to cash in on high prices and buyers moved to the sidelines in the wake of new housing rules aimed at cooling demand. Prices continued to rise, but below the pace of recent gains.
Among financial stocks, Bank of Montreal dipped 0.7% to $90.67, while Manulife dissolved 0.6% to $23.44.
Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed their ties with Qatar, accusing the country of supporting terrorism and opening up the worst rift in years among some of the most powerful states in the Arab world.
ON BAYSTREET
The TSX Venture Exchange slid 0.94 points to 800.04
All 12 TSX subgroups were negative, as health-care swooned 2.1%, while materials fell 0.9%, and consumer staples dipped 0.8%,
ON WALLSTREET
U.S. equities traded mixed on Monday, holding near record levels, while shares of Apple declined on a rare downgrade.
The Dow Jones Industrials faltered 7.94 points to 21,198.35, with Goldman Sachs gaining the most.
The S&P 500 docked 2.85 points to 2,436.22, with financials leading advancers and real estate lagging.
The S&P tech sector has handily outperformed in 2017, advancing 21.5%. On Monday, the sector rose 0.3%, but a decline in Apple shares capped gains.
The NASDAQ staggered 12.31 points to 6,293.49, after reaching an all-time intraday high.
Apple's stock fell 0.9% after Pacific Crest analyst Andy Hargreaves downgraded the stock to sector weight from overweight. In a Sunday note, Hargreaves said the stock is not pricing in potential risks, like supply issues with the new iPhone 8.
Investors also kept an eye on Apple's annual developers' conference on Monday, where the company is expected to reveal new products.
In economic news, the IHS Markit U.S. services Purchasing Managers Index for May came in at 53.6, up from 53.1 in April, marking "the largest rise in overall activity since February," IHS said in a release.
The May Institute for Supply Management's non-manufacturing index, meanwhile, came in at 56.9, just below a consensus estimate of 57.0.
Prices for the benchmark 10-year Treasury note fell, raising yields to 2.18% from Friday’s 2.15%. Treasury prices and yields move in opposite directions.
Oil prices slid 59 cents to $47.07 U.S. a barrel
Gold prices gained $2.30 at $1,282.50 U.S. an ounce.
