(MENAFN - ProactiveInvestors - Australia) From North America: Toronto's main market was still in the red late Monday afternoon, as worries about Spain overshadowed rising commodity prices and sentiment improved by weekend polls in Greece that pointed toward a victory for pro-bailout parties.
US markets were shut Monday for the Memorial Day holiday.
Spain's Bankia SA (STN:BKIA) shares were at record lows on Monday, and confidence remained low that the country's government could effectively steady its troubled banking system.
Shares of Bankia plunged as much as 30 per cent early Monday as trading of the bank resumed in Madrid after it requested late Friday 19 billion euros (24 billion) from the government as part of a bailout plan. Shares were halted Friday ahead of the announcement.
The bailout figure was bigger than many analysts expected, with several cutting price targets of Bankia ahead of the open. On Friday afternoon, Standard & Poor's cut the debt of Bankia, Banco Popular and Bankinter to junk status on worries over the country's banking system.
On Monday, yields on 10-year Spanish paper jumped to around 6.42%, but Spain's prime minister, Mariano Rajoy, insisted that the country's banking sector would not need an international rescue. Yields of 7% have prompted international bailouts for Greece, Ireland and Portugal.
In early morning trading in Toronto, the S&P/TSX added to its strong gain last week, gaining about 50 points, but slumped 13.53 points in late afternoon to 11,562.94 while the S&P/TSX Venture Composite climbed 9.78 points to 1,319.05, as at 4 pm EDT.
Energy and financials enjoyed slight gains in the afternoon, up 0.50% and 0.05% respectively, while materials were down 0.26%.
Commodities headed higher Monday after reports that the Chinese government is set to add more stimulus to the economy.
Premier Wen Jiabao promised last week to encourage pro-growth policies, and the National Development and Reform Commission, China's top economic planner, has now approved three large steel construction projects.
On Monday, gold for June delivery rose 4.10, to 1,573 an ounce in electronic trading on the Comex division of the NYME, while oil for July delivery rose 29 cents, or 0.3%, to 91.15 a barrel on the NYME. Silver futures were up 0.79% to 28.38 an ounce, while the base metal copper contract gained 1.12% to 3.47 a pound.
In energy, Talisman Energy (TSE:TLM) was up 0.28% on Monday, while Birchcliff Energy (TSE:BIR) fell 1.27%. Elsewhere in the sector, Petrobank Energy (TSE:PBG) gained 2.94%.
In mining, Osisko Mining (TSE:OSK) grew 0.98%, while HudBay Minerals (TSE:HBM) gained 2.17%. Copper heavyweight Teck Resources (TSE:TCK.B) edged up 0.61 %.
Despite the yellow metal gaining in price, gold giants Goldcorp (TSE:G) and Barrick Gold (TSE:ABX) posted losses of 1.54% and 0.68% respectively, while Kinross (TSE:K) fell 0.70%.
In the financial sector, Manulife Financial (TSE:MFC) was up 2.32%, and the Bank of Montreal (TSE:BMO) gained 0.39%, while the Bank of Nova Scotia (TSE:BNS) fell 0.22%.
Canadian bank earnings reports continue this week, with Bank of Nova Scotia reporting Tuesday and Canadian Imperial Bank of Commerce (TSE:CM) and National Bank of Canada (TSE:NA) reporting on Thursday.
On the corporate front, Canadian Pacific Railway (TSE:CP) management has decided not to bargain with striking workers because the federal government announced it is tabling back-to-work legislation.
Labour Minister Lisa Raitt introduced the legislation in the House of Commons just after noon in Ottawa, saying that the strike couldn't be allowed to go on.
The Royal Bank of Canada (TSE:RY) (NYSE:RY) reported on Monday that it would release 130 million in tax uncertainty provisions after resolving several tax matters.
The funds were previously recorded against businesses that were discontinued in previous years, the bank said in Monday's statement.
Canada's largest bank by assets said it would also earn interest income of 70 million, or 50 million after tax, related to a refund of taxes paid in previous years.
Research In Motion (NASDAQ:RIMM) (TSE:RIM) saw its chief legal officer Karima Bawa resign Monday, according to media reports, joining a host of former company executives to step down since Thorsten Heins assumed the position of CEO earlier this year.
RIM sales have decreased largely, with a 19 percent drop in sales in the company's last quarter, and a reported net loss of 125 million. The company also now represents only 7 percent of global smartphone shipments.
RIM is expected to begin the second downsizing of this year in the next few weeks, planned for around June 1, a day before its first quarter is completed, and ahead of the upcoming BlackBerry 10 release.
Mandalay Resources (TSE:MND) said Monday it has started a previously announced warrant exchange offer and mailed the formal issuer bid and other related documents to holders of the company's common share purchase warrants.
It has also filed the offer documents to the applicable securities regulators, the company said in a statement Monday.
Talisman Energy (TSE:TLM) (NYSE:TLM) said Monday that Petroliam Nasional Berhad (Petronas), the national oil company of Malaysia, has awarded the company with a new production sharing contract to bolster oil recovery from the Kinabalu oil fields in Malaysia.
The Kinabalu oil fields are currently run by Shell, with the present production contract set to expire in late December 2012.
Brigus Gold Corp. (TSE:BRD) said Monday power was restored at its Black Fox mill and operations have since resumed after forest fires disrupted power which halted milling operations.
The Halifax-based mining company reported last Friday severe forest fires caused a power disruption, although mining operations were not affected by the fire. The company's assets were not damaged, it added.
Day4 Energy (TSE:DFE) said Monday that it will sell itself to senior management in exchange for assumption of the company's liabilities, and will apply to delist its shares from the Toronto Stock Exchange.
The Canadian solar panel company said that all of its business, assets and operations will be transferred to a private company indirectly owned and controlled by president and CEO George Rubin, and executive vice president and CFO Douglas Keast.
This will be in exchange for cash consideration of 500,000 as well as the assumption of Day4's debt.
Canadian National Railway (TSE:CNR) said Monday that members of the Teamsters Canada Rail Conference-Rail Canada Traffic Controllers (TCRC-RCTC) have ratified a three-year contract covering about 210 train dispatchers in Canada.
The contract, retroactive to January 1, 2012, provides wage increases along with standard benefit improvements to the TCRC-RCTC members at CN, said the company.
Two pharmaceutical companies Paladin Labs (TSE:PLB) and Nuvo Research (TSE:NRI) reported Monday that they've inked a license and supply deal for Synera, an anaesthetic patch for kids.
Upon regulatory approval, Paladin will have exclusive Canadian rights to market and sell Synera. The patch is used to numb children's skin prior to drawing blood, or similar needle procedures.
US/Europe
US markets were closed for Memorial Day, but the week ahead is set to bring US markets more drama after the Monday holiday, with investors focused on Greece, Spain and the broader European debt crisis.
In the US this week, the all-important monthly jobs report is due out Friday, with economists expecting a gain of 150,000 for non-farm payrolls in May, up from 115,000 the previous month. The unemployment rate is expected to remain unchanged at 8.1 per cent.
On Friday, the University of Michigan's Consumer Sentiment Index for the month of May rose to 79.3 from 76.4 in April - the highest level since October 2007 - providing some support for markets. The index was expected to come in at 77.5.
Stocks in Europe had posted solid gains early Monday, as investors were cheered after polls in Greece pointed to a victory for pro-bailout parties ahead of next month's elections.
But European stock markets were well off earlier highs Monday, with several bourses entering the red zone on concerns over Spain.
Britain's FTSE 100 index was ahead 0.09%, while Germany's DAX shed 0.26% and France's CAC 40 fell 0.16%. The IBEX 35 index was down 2.17% to 6,401.
