(MENAFN - ProactiveInvestors - N.America) Toronto's main market was lower in late morning trading Monday as investors worried a European Union summit later this week would do little to resolve the debt crisis.
As at 11.16am EDT, the S&P/TSX Composite was down 108.47 points, or 0.95% lower at 11,327.07, while the junior S&P/TSX Venture index was 17.91 points lower, or 1.48%, at 1,188.12.
On the commodities front, crude futures were down 1.38% to 78.66 a barrel. In precious metals, gold futures gained 0.43% to 1,573.60 an ounce while silver rose 0.38% to 26.83 an ounce. Base metal copper futures were down 0.44% to 3.30.
Spain formally requested a bailout loan for its banking sector from its eurozone partners. Eurozone countries have agreed to lend up to 100 billion euros.
No specific figures were given for the emergency loans, although recent independent audits said that the banks would need up to 62 billion euros to stabilise themselves.
Cyprus was hit with a downgrade by credit ratings agency Fitch. Cyprus could soon become the latest, and smallest, member of the euro currency union to request a bailout from the European Union.
Heads of state from Germany, France, Italy and Spain said Friday that they had agreed on a set of growth-enhancing policies equal to about 125 billion euros, or 1% of eurozone gross domestic product.
They did not go into detail, but the specifics are expected to be fleshed out when leaders from all 27 members of the European Union meet later in the week for a summit in Belgium.
In Toronto, the materials sector was down 0.07%, energy fell 2.22% while financials were 1.08% lower.
Amongst the gainers, Romarco Minerals (TSE:R) was up 5.88% and Centerra Gold (TSE:CG) gained 3.56%. Stocks on the decline were Sun Life Financial (TSE:SLF), which shed 2.49% and asset manager AGF Management (TSE:AGF.B) was down 2.24%.
In corporate news, Thomson Reuters (TSE:TRI)(NYSE:TRI) has acquired privately-held Zawya Ltd, an online service supplying business information in the Middle East and North Africa.
Precious metals producer Coeur d'Alene Mines Corp. (TSE:CDM)(NYSE:CDE) said it would evaluate strategic options for a silver and gold mine in Argentina due to high operating costs, and will recognize a charge in the second quarter.
Property manager FirstService Corp. (TSE:FSV) said a subsidiary opted out from a property services agreement with a United States government-backed entity as the business turned unprofitable.
US/Europe
US markets were lower Monday morning, with Wall Street pessimism growing on prospects of concrete results from a meeting of European leaders later in the week.
Most recently, the Dow Jones Industrial Average fell 1.2% to 12,486.80, the S&P 500 lost 1.7% to 1,312.82 and the NASDAQ shed 1.9% to 2,837.92.
In corporate news, shares of New Jersey-based Watson Pharmaceuticals (NYSE:WPI) rose on news that U.S. drug regulators gave it permission to produce generic forms of Adderall XR. Until now, Shire (NASDAQ:SHPGY) has been the only producer of the drug, administered to those diagnosed with attention deficit hyperactivity disorder.
The Hershey Co. (NYSE:HSY) Monday updated its 2012 earnings and revenue guidance, along with its continued strategy to expand its core brands.
The chocolate and confectionery giant has raised adjusted earnings expectations to be in the range of 3.11 to 3.17 per share, a growth of 10 to 12 percent compared to 2.83 per share earned in 2011.
Analysts forecast 2012 earnings to be 3.21 per share.
Walt Disney's (NYSE:DIS) movie "Brave" topped the weekend box office with 66.7 million in North American ticket sales, above analyst forecasts.
In economic news, new home sales for May rose at a seasonally adjusted annual rate 369,000, according to government data. Sales were expected to come in at 350,000, according to a survey of analysts by Briefing.com, up from 343,000 in the prior month.
In Europe, markets closed in the red, with the FTSE 100 endging down 0.99%, the Dax was 1.84% lower and the CAC 40 was down 2.08%.
