Markets opened lower Monday on weaker oil and gold prices as the U.S. dollar gained strength.
The Toronto Stock Exchange's benchmark, the S&P/TSX composite index, was down 158 points, or 1.49 per cent, to 10,4011.29 in early trading.
The Canadian dollar was down to 89.32 cents U.S. — its lowest level in two weeks — from its previous close of 89.37 cents U.S..
The price of oil was down to $68.19 U.S. a barrel after finishing Friday at $68.44 U.S. a barrel. Crude has jumped more than 50 per cent in 2009 — 38 per cent in the just the past two weeks — leading many to speculate it is due for a correction.
Gold was down to $948.70 U.S. an ounce after closing at $962.60 U.S..
Housing starts rose more than expected in May, with increased construction seen in both single- and multiple-dwelling sectors, according to Canada Mortgage and Housing Corporation. The seasonally adjusted annual rate of starts increased to 128,400 units during the month from 117,600 in April, CMHC said Monday. Economics expected housing starts to total 126,000 units in May.
"The Canadian housing market appears to have bottomed with existing home sales and price deflation improving over the past few months," said Benjamin Reitzes at BMO Capital Markets ahead of Monday's data.
According to the results of a survey by the Organization for Economic Co-operation and Development on Monday, there are stronger indications that the downturn may have hit bottom in Canada, France, Italy and Britain. The organization also said the economic outlook for the OECD area declined at a slower pace in April its composite leading indicator for the area rose.
In the U.S., the Dow Jones industrial average was down 75.72 points, or 0.85 per cent, to 8,686.57, and the Nasdaq composite index was down 11.68 points, or 0.63 per cent, to 1,837.72 early Monday.
McDonald's Corp. reported a 5.1 per cent increase in May sales at restaurants open at least 13 months, led by strong demand in Europe and Asia. The world's No. 1 hamburger chain said it's Dollar Menu has been a hit during the recession making the fast food giant the industry's top performer. May same-restaurant sales were up 2.8 per cent in the U.S. Shares at McDonald's were at $57.75 U.S., down $2.12 U.S. in early trading.
Overseas markets were mostly lower Monday. In Europe, retreating commodity prices and banking stocks weighed markets down. London's FTSE 100 index was down 55.98, points, or 1.26 per cent, to 4,382.58 at midday. In Frankfurt, Germany's DAX was down 77.80 points, or 1.53 per cent to 4,999.23. The Paris CAC was down 51.60 points, or 1.55 per cent, to 3,287.45.
In Asia, Japan's Nikkei stock average closed up 97.62 points, or one per cent, to 9,865.63. Hong Kong's Hang Seng index was down 426.14 points, or 2.28 per cent, to 18,253.39.
On Friday, the S&P/TSX climbed 92.05 points, or 0.9 per cent, to 10,569.29. The Dow added 12.89 points, or 0.2 per cent, to 8,763.13 and the Nasdaq was down 0.6 points, or virtually flat percentage-wise, to 1,849.42.
