Miners retreat, pushing TSX lower
By Alastair Sharp
TORONTO (Reuters) - Canada's main stock index recoiled on Monday as investors pocketed some big gains from recent sessions and waited to see if the U.S. Federal Reserve will launch new stimulus measures.
Gold miners fell back after a strong showing in the past week as bullion prices eased from six-month highs. Other miners also retreated after surging late last week on hopes China's infrastructure drive will boost demand for commodities needed to make steel and other construction materials.
"You've had a lot of strong moves in a couple of days and you've probably got some traders taking money off the table in advance of the (U.S. Federal Reserve's) Open Market Committee meeting later this week," said Bob Gorman, chief portfolio strategist at TD Waterhouse.
The Fed is widely expected to take out extra insurance this week against an economic relapse by opting for fresh monetary stimulus.
Such a move would likely help the Toronto index move higher as resource-related stocks gain from steps to kick-start commodity demand, but investors may have already placed all their bets after recent moves in Europe and China to stoke economic growth.
Investors are also awaiting a German court ruling on the constitutionality of the euro zone's new bailout fund and the outcome of Dutch elections. <MKTS/GLOB>
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 52.58 points, or 0.43 percent, at 12,215.43. The index hit a four-month high on Friday after adding more than 300 points in three sessions.
Miners Barrick Gold Corp (ABX.TO: Quote) and Goldcorp Inc (G.TO: Quote) were the two biggest weights on Monday, down 1.9 percent to C$38.53 and off 2 percent at C$41.21 respectively. Pipeline operator Enbridge Inc (ENB.TO: Quote) also pushed lower, down 1.5 percent at C$38.27. Continued...