Stocks took a pounding at the outset Monday, dragged down by falling commodity prices as the initial enthusiasm faded over a European Union deal to tackle its debt crisis.
The S&P/TSX Composite Index began Monday’s trading off 158.82 points, or 1.3%, to 11,875.93
The Canadian dollar dipped 0.75 cents to 97.37 cents U.S.
Among Canadian stocks to watch this morning, Encana Corp., which announced it will sell Alberta natural gas assets to the gas-distribution unit of Centrica Plc for $58 million and some other properties, extending a string of sales as Encana grapples with low gas prices.
Suncor Energy said on Sunday it was withdrawing from Syria as a result of sanctions announced by the European Union on December 2.
Insurer Sun Life Financial will stop marketing variable annuity and individual life insurance products in the United States by the end of the year to focus on growing its U.S. group insurance and employee benefits business.
Lundin Mining expects a rise in zinc and copper production in 2013 and 2014, helped by higher grades of ore and a ramp up of its production facility.
The oil and gas exploration company known as Gran Tierra Energy Inc. said its CFO, Martin Eden, has been placed on medical leave to recover from emergency surgery and appointed James Rozon as the acting CFO.
Canacol Energy said it expects higher production and capital budget for calendar 2012, and said it is on track to exit this year with about 14,000 net barrels of oil per day.
Afferro Mining Inc. reported that Severstal reached agreement to acquire the remaining 38.5% stake in the Putu iron ore project from Afferro for an initial $65 million, plus a possible $50 million additional future payment.
ON BAYSTREET
The TSX Venture Exchange slid 22.43 points to 1,524.88, while the Nasdaq Canada index stumbled 6.38 points to 382.43
All but two of the 14 Toronto subgroups hurtled earthward in the first hour Monday. Global base metals fell 2.7%, while the metals and mining and gold groups tanked 2.6%.
Only telecoms, with a 0.4% gain, and health-care, picking up 0.3%, held out against the negative tide.
ON WALLSTREET
In New York, stocks opened sharply lower Monday as investors remained uncertain about the debt crisis in Europe.
The Dow Jones Industrials plummeted 159.24 points, or 1.3%, to begin the week at 12,025.
The S&P 500 dropped off the pace 14.60 points, to 1,240.59, while the Nasdaq Composite diminished 48.27 points to 2,598.58.
Financial stocks will again be in focus as the biggest reactors to European debt concerns.
Shares of Citigroup, Bank of America, Goldman Sachs and JPMorgan Chase were all down between 2.5% and 6.5% in morning trading.
Intel shares fell after the chipmaker warned that fourth-quarter results will be below previous forecasts because of hard-drive supply shortages.
European leaders, including the 17 members of the euro-zone, reached a deal for a new intergovernmental treaty Friday to create fiscal unity and resolve the long-running debt crisis.
The plan is expected to be finalized by March but a lot can happen between now and then.
One expert cites Moody's "renewed call to review European sovereign debt," as a source of pressure weighing on the markets. Early Monday, the credit ratings agency said Friday's plan offered "few new measures" and pledged to review the credit ratings of all European Union members at the beginning of the New Year.
Without any major U.S. economic reports due out Monday, the euro will remain the main driver
Also on Monday, the European Commission, European Central Bank and International Monetary Fund, known as the Troika, will return to Athens to continue discussions with Greece's new government about that country's bailout needs and austerity plans.
The price on the benchmark 10-year U.S. Treasury gained back lost strength, pushing the yield down to 2.00%, from 2.05% late Friday. Treasury prices and yields move in opposite directions.
Oil for January delivery demurred $1.35 to $98.06 U.S. a barrel.
Gold futures for February delivery fell $45.60 to $1,671.20 U.S. an ounce.
