The Toronto stock market was pulled down by lower commodities prices on Monday as concerns about the European economy returned to the forefront.
The S&P/TSX composite index moved back 70.06 points to 12,313.54. The TSX Venture Exchange fell 12.26 points to 1,333.46.
The Canadian dollar was 0.25 of a cent lower at US102.17¢. And both crude oil and gold prices lost ground, as questions about demand impacted prices.
November crude on the New York Mercantile Exchange moved down 96¢ to US$91.93 a barrel.
The December bullion contract decreased $13.40 to US$1,764.60 an ounce. December copper was off 5¢ to US$3.74 a pound.
The TSX gold sector was down with Barrick Gold Corp. dropping $1.17 to $40.45. Energy stocks were off 1.2%, and Talisman Energy fell 20¢ to $13.42.
Financials gained 0.4% with Royal Bank up 32¢ to $56.17.
On Wall Street, the Dow Jones industrials dropped 20.55 points to 13,558.92.
The Nasdaq composite index moved back 19.18 points to 3,160.78 and the S&P 500 index was 3.26 points lower to 1,456.89.
With little major economic data on the calendar this week, investors will likely return focus to Europe and whether Spain will tap a new European aid program. Also in focus will be the direction of the Chinese
economy after data last week suggested further weakness.
In Germany, a business confidence index released Monday showed that the biggest European economy saw declines for the fifth straight month, surprising many economists.
The shine has been wearing off what has been an optimistic month for stock markets, characterized by an enthusiastic climb that defined much of the first half of September. The latest indicators, however, suggest the global economy is still slowing down and recovery will take time.
Europe's debt crisis will remain a point of focus for investors. Spain is due to unveil a new series of cost-cutting measures and structural reforms that could pave the way for a demand for financial aid from its fellow eurozone countries.
In corporate developments, Canaccord Financial Inc. is closing 16 branches of its wealth management firms across the country and reducing the number of advisors at the remaining Canadian locations, which will be concentrated in major cities. Shares of the company dropped 34¢ to $5.76.
And Facebook Inc.'s stock was lower after Andrew Bary at financial magazine Barron's said he thinks Facebook's stock is worth $15, well below its current price even with Monday's drop. Shares dropped 9% or $2.07 to $20.79.