Canadian stocks edged lower Monday as oil prices rose in anticipation that U.S. economic growth will continue to accelerate but gold stocks fell.
The S&P/TSX composite index slipped into negative territory late in the session, closing down 17.26 points, or 0.14%, to 12,479.70 as U.S. crude futures rose US$1.03 a barrel to $108.09 a barrel.
Suncor Energy rose 1.55%, or 51¢, to $33.46 while Canadian Natural Resources climbed 1.31%, or 46¢, to $35.50.
The Canadian dollar, meanwhile, rose close to its highest point in the past eight months - up 45 basis points to US$1.0127 - as the benchmark S&P500 index climbed to its highest level since 2008 on broad hopes for a continuing U.S. economic recovery.
"We've been moving higher over the last few months, but it makes sense for the market to pause from time to time," Tony Demarin, chief investment officer at BCV Asset Management in Winnipeg, told Bloomberg.
"In terms of oil stocks, there's still a bit of a disconnect between their prices and the lofty price for crude. They still have more room to climb to catch up, and you're seeing that a bit today."
Gold prices rose US$11.50 to US$1,667.30 an ounce, although the TSXmaterials sector still posted the worst performance of the benchmark index's 10 sub-indexes, fall-ing 0.84%.
Shares in Viterra Inc. fell 24¢, or 1.48%, to $15.97 in a halt-shortened session after the grain handler confirmed it's in exclusive discussions with a third party about a possible sale. Speculation is that the purchasing group would comprise Swiss commodity trader Glencore International, Calgary-based Agrium and Winnipeg's Richardson International.
Viterra didn't name the company it's in talks with but said last week it was aware of reports speculating that there had been expressions of interest of about $16 a share.
In the U.S., the Dow Jones industrial average edged up 6.51 points, or 0.05%, to 13,239.13 while the Nasdaq composite index climbed 0.75%, or 23.06 points, to 3,078.32.
Shares in Apple Inc. rose US$15.53, or 2.65%, to $601.10 in trading on the Nasdaq after the tech giant announced a share buyback and that it would begin paying a dividend for the first time since 1995.
"There's plenty of room for dividends to increase," Paul Zemsky, the New Yorkbased head of asset allocation for ING Investment Management, told Bloomberg. His firm oversees US$160 billion. "Paying dividends is a sign of health in the companies and the economy."
In Europe, London's FTSE edged down 0.07% to 5,961.11 while the Paris CAC lost 0.47% to 3,577.88 and Frankfurt's DAX slipped 0.05% to 7,154.22.
