By Anna Andrianova, MarketWatch
NEW YORK (MarketWatch) — Canadian stocks closed lower Monday after enthusiasm ebbed for a weekend deal to bail out Spanish banks.
“The Spain bailout was a catalyst for the morning rally, but the amount of help was [so] small that it did not give lasting momentum. The capital was coming out of the Canadian market,” said Danielle Park, president and portfolio manager at Venable Park Investment Counsel Inc.
The S&P/TSX Composite index fell 98.85 points, or 0.9%, to close at 11,401.78, giving up an early gain to a high of 11,593.66.
The materials sector /zigman2/quotes/210598474/delayed XX:TORGC195 +1.35% declined 1.3%, energy /zigman2/quotes/210598495/delayed XX:TORGC187 +0.98% ended down 1.7% and diversified metals and mining index fell 2.5%.
Asian stocks rally after Spain bailout
Markets rallied around Asia and the euro rose after Spain accepted a bank bailout, with sentiment further improved by less-bad-than-expected Chinese economic data.
Shares of Barrick Gold Corp. /zigman2/quotes/209252292/delayed CA:ABX -0.28% declined 1.3%, while Yamana Gold Inc. /zigman2/quotes/206359073/delayed CA:YRI -0.16% /zigman2/quotes/201751186/composite AUY +1.00% shed 0.6% by the close.
Gold futures for delivery in August climbed 0.3% and finished at $1,596.80 an ounce on the Comex division of the New York Mercantile Exchange, reversing from earlier losses as safe-haven assets like the dollar and bonds secured investor interest. Read more on gold.
Suncor Energy Inc. /zigman2/quotes/204570600/delayed CA:SU +0.43% /zigman2/quotes/210480277/composite SU +1.38% fell 2.4%. Oil futures for delivery in July fell 1.7% and settled at $82.70 a barrel on Nymex. Read more on oil futures.
“The oil market may appear jittery ahead of Greek elections on June 17. The market is also concerned over what OPEC may or may not do at their Thursday summit, with various accounts offering different spins,” said energy analyst Tim Evans with Citi Futures Perspective, in a note.
Canada’s financial sector /zigman2/quotes/210598468/delayed XX:TORGC189 +1.96% lost 0.4%. Shares of Fairfax Financial Holdings Ltd. /zigman2/quotes/207415723/delayed CA:FFH -1.64% ended 0.4% higher, while shares of Royal Bank of Canada /zigman2/quotes/200638870/delayed CA:RY +1.36% lost 0.6%.
Early morning positive momentum from the Spanish bank bailout agreement was replaced by a dive in U.S. and European stocks.
The Stoxx 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.89% ended slightly lower. The S&P 500 /zigman2/quotes/210599714/realtime SPX +2.13% declined 1.3%. Analysts raised concerns on unclear details of the Spanish banks’ rescue plan. Read more on U.S. stocks.
The Spanish government announced Saturday that it would seek assistance from the European Union — of up to 100 billion euros ($125 billion) — to shore up the banking sector, hit hard by bad loans that have resulted from the collapse of the housing market. The amount will be determined once the results of an independent audit of the banks is known June 21. Read more on Spain.