Canadian stocks fell Monday, with the market’s benchmark index trading at its lowest level of the month, as optimism faded about the prospects of last week’s European Union efforts to stem the region’s debt crisis.
The S&P/TSX Composite Index ended the day down 126.86 points, or 1.1%, at 11,907.89, having touched a low of 11,812.73, its lowest intraday level since Nov. 30.
The Canadian dollar dipped 0.64 cents to 97.49 cents U.S.
Miners took a lot of heat Monday, as shares of Lundin Mining Corp. dropped 25 cents, or 6%, to $3.89, and Iamgold Corp. fell 64 cents or 3.3% to $18.92.
Metals futures prices traded broadly lower. The U.S. dollar rose sharply, which makes the metals more expensive to holders of other currencies. Gold futures prices lost more than $50 an ounce.
Energy stocks were also lower, as shares of Talisman Energy shed 34 cents, or 2.7% to $12.31 and Suncor Energy declined by 87 cents, or 2.9% to $28.98.
Suncor said it’s suspending its operations in Syria following the imposition of sanctions against President Bashar Assad’s regime.
Shares of Sun Life Financial Inc. were among the few gainers in Toronto. They rose $1.48, or 8.1%, to $19.80, after the company said it will discontinue U.S. sales of variable annuity and individual life insurance products at year end due to "unfavourable product economics." Sun Life’s chief executive said 800 job cuts are planned.
ON BAYSTREET
The TSX Venture Exchange slid 56.39 points to 1,490.92, while the Nasdaq Canada index stumbled 6.21 points to 382.60
All but two of the 14 Toronto subgroups greeted the closing bell in the red. Global base metals tumbled 3.1%, gold tanked 3%, while metals and mining tripped 2.9%.
The telecoms group gained 0.8%, while consumer staples soldiered on 0.5%.
ON WALLSTREET
In New York, stocks tumbled in a broad selloff Monday amid growing investor doubt that Europe's debt crisis will actually be resolved, and a sales warning from chipmaker Intel.
The Dow Jones Industrials plummeted 162.87 points, or 1.3%, also off its lows for the day, to finish at 12,021.40.
The S&P 500 went south 18.31 points, to 1,236.88, while the Nasdaq Composite fell 34.59 points to 2,612.26.
The mood on Wall Street was also sour after Intel warned that it will badly miss its sales forecast for the current quarter because of the worldwide hard drive shortage caused by massive floods in Thailand. Shares of Intel dropped nearly 5%, making the chipmaker's stock one of the biggest losers among Dow issues.
Financial stocks were again 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 3% and 7% Monday.
Netflix's stock spiked 7% on chatter that the company could be acquired by Verizon. Netflix's spokesman said the company doesn't comment on rumors or speculation.
Monday's sharp retreat followed Friday's rally, fueled by a deal for a new inter-governmental treaty reached by European leaders 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.
Leaders of the European countries involved in the deal will have to go back and convince their politicians to pass measures that will include "all the ugly stuff that comes along with belt tightening," according to one observer
Moody's "renewed call to review European sovereign debt" added pressure 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.
The price on the benchmark 10-year U.S. Treasury gained back lost strength, pushing the yield down to 2.01%, from 2.05% late Friday. Treasury prices and yields move in opposite directions.
Oil for January delivery demurred $1.30 to $98.11 U.S. a barrel.
Gold futures for February delivery fell $48.60 to $1,668.20 U.S. an ounce.
