TORONTO - The Toronto stock market ended Monday at its lowest level in three weeks after oil prices tumbled and banking giant Citigroup announced another round of devastating job cuts.
Toronto's S&P/TSX composite index fell 260.51 points to 8,795.45 -- its lowest close since Oct. 27.
The Canadian dollar was at 81.75 cents US, up 0.15 of a cent.
On Wall Street, the Dow Jones industrial average dropped 223.73 points to 8,273.58. The Nasdaq composite index lost 34.80 to 1,482.05 and the S&P 500 declined 22.54 to 850.75.
Citigroup Inc. said it's cutting 53,000 more jobs in the coming quarters as the financial services giant struggles to steady itself after massive losses from deteriorating debt.
The TSX financial group led losses down 3.8 per cent. Bank of Montreal (TSX:BMO) fell 3.7 per cent, or $1.55, to $39.90.
The Toronto energy sector was down three per cent after the December crude contract ended the session at a 22-month low on circulating questions about energy demand.
Light sweet crude slid $2.11 to settle at US$55.49 a barrel on the New York Mercantile Exchange.
In downbeat Canadian financial and oilpatch news, the Fort Hills oilsands partners have put off an investment decision on the mine near Fort McMurray, Alta., likely until next year.
The partners -- Petro-Canada (TSX:PCA), Teck Cominco Ltd. (TSX:TCK.B) and UTS Energy Corp. (TSX:UTS) -- indefinitely shelved a decision on the project's proposed upgrader near Edmonton. Teck Cominco stock was ahead 4.6 per cent, or 29 cents, to $6.64.
The gold sector lost 3.6 per cent as the December bullion contract ended the day 50 cents lower to US$742 an ounce. Earlier in the session it had fallen as much as $12.90.
The TSX Venture Exchange closed down 15.82 to 785.79.
The U.S. Federal Reserve reported industrial output rose more than expected in October after plunging in September by the largest amount in over 60 years.
Investors are waiting to see whether the U.S.-based automakers will get a taxpayer bailout. Senate Democrats plan to introduce legislation aiming to give General Motors, Ford and Chrysler part of the $700 billion set aside to support the financial industry. A vote could come Wednesday.
Cash-strapped GM is selling its three per cent stake in Suzuki Motor Corp. back to the Japanese vehicle maker for 22.37 billion yen (US$230 million). GM previously cut its Suzuki stake from 17 per cent in 2006.
Analysts believe the market is still searching for a bottom after last month's huge losses, and expect the pattern of volatility to continue for some time.
"I doubt that any specific piece of news by itself will take care of the overwhelming negative vibe that we have on this market," said Vincent Delisle portfolio strategist at Scotia Capital in Montreal.
"Right now we just want to cushion the fall and make sure that 2010 is not another recession year."
Stocks in Forsys Metals Corp. (TSX:FSY) rose 29 per cent after the company said it has reached a takeover agreement worth nearly $600 million that will put it in the hands of a unit of privately held Africa-based Forrest Group.
Forsys is active in uranium development in Namibia, and the deal is worth $7 per share. Company shares climbed $1.36 to $6.
Target Corp. was added to the list of U.S. retailers delivering discouraging results. The company blamed lower sales at established stores as the reason for a 24 per cent drop in profit.
Hardware retailer Lowe's said its third-quarter profit fell 24 per cent to US$488 million as consumers delayed home-improvement projects and big-ticket purchases, but the result beat Wall Street expectations.
More Canadians backed out of their mutual fund investments last month than any other time on record, said the Investment Funds Institute of Canada.
In October there were $8.4 billion in net redemptions, and total industry assets ended the month 19.5 per cent below their year-ago level.
