Canadian stocks fell as euro area finance ministers quarreled over the future of the banking system and the parameters of future bailouts.
Rona Inc. (RON) plunged 11 percent after U.S.-based Lowe’s Cos. withdrew its unsolicited C$14.50 ($14.91) a share offer for the Quebec-based home improvement retailer. Teck Resources Ltd. (TCK/B) declined 2.2 percent after analysts at Canaccord Genuity Corp. cut the stock to a hold.
The Standard & Poor’s/TSX Composite Index (SPTSX) fell 15.67 points, or 0.1 percent, to 12,483.80 at 9:58 a.m. in Toronto. The benchmark equity gauge has advanced 4.4 percent this year.
Squabbling among European governments over the next steps needed to overcome the sovereign debt crisis raised the specter of more turmoil, sending global stocks lower.
A Sept. 14 European Union finance ministers meeting in Cyprus deadlocked over the timetable for a more unified EU banking sector, with a German-led coalition pushing back against a more ambitious plan sought by France, Spain and Italy. The ministers also bickered over the terms of bailout requests and the role of the European Central Bank.
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