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The Toronto stock market moved lower as a rising U.S. dollar helped depress commodity prices and resource stocks.
The S&P/TSX composite index shed 9.44 points, or 0.06 per cent, to 15,162.80 while the TSX found lift from the pharmaceutical sector.
Shares of Valeant Pharmaceuticals International Inc. were higher after it offered $10-billion in cash in a friendly deal for U.S. drug company Salix Pharmaceuticals Ltd., a developer of drugs to treat gastrointestinal diseases. Valeant expects to achieve more than $500-million in annual cost savings for the combined company. Its shares jumped $30.06 or 14 per cent to $247.77.
The Canadian dollar declined 0.34 of a U.S. cent to 79.42 cents.
New York markets were negative with the Federal Reserve in focus this week with chairwoman Janet Yellen set to deliver her semi-annual testimony on the economy and monetary policy to Congress on Tuesday and Wednesday. Traders will look to her remarks for indications on when the Fed might start raising interest rates. Many analysts think the Fed could move as early as June.
The Dow Jones industrials dropped 65.15 points to 18,075.29, the S&P 500 index was down 6.64 points to 2,103.66 and the Nasdaq slipped 14.81 points to 4,941.16.
The U.S. dollar strengthened ahead of a deadline set for Monday night when Greece is due to submit a list of proposed reforms to its debt inspectors to get final approval for an extension to rescue loans that are set to expire on Feb. 28.
The Greek government government and its creditors agreed Friday to extend the country's rescue loans by four months. In return, Greece would have to commit to a series of budget measures meant to keep a lid on debts and improve the economy.
Crude prices fell for a fourth session after data last week showed continued sharp rises in U.S. inventory levels. Prices have fallen about 40 per cent since the end of November amid a huge oversupply of crude on world markets.
The energy sector shed 1.5 per cent as the April crude contract in New York dropped $1.02 to $49.79 (U.S.) a barrel.
Financials were also a drag, down one per cent as investors were set to pore over quarterly earnings reports from the financial sector. Five of the six big Canadian banks report this week – the market hears from Scotiabank next week.
It's been a tough quarter for the banks as they deal with slowing growth, the effect of the plunge in oil prices on some of their biggest customers in the oil patch and a low interest rate environment.
The base metals sector shed 0.1.4 per cent with March copper down two cents at $2.57 a pound.
The gold sector provided lift, up 1.1 per cent while April gold was ahead 90 cents to $1,205.80.
Canadian National Railway shares dropped 83 cents to $86.87 with talks are set to continue between the railroad and Unifor, the union representing nearly 5,000 employees. It could be a make or break session – the railway said Friday that it would lock out the Unifor members unless the union agreed to binding arbitration to settle contract differences.