12:23 PM EST, 01/13/2025 (MT Newswires) -- The Toronto Stock Exchange is down 215 points at midday, adding to the more than 300 points lost on Friday, with healthcare (-2%) and technology (-1.6%), the biggest decliners.

Energy and telecoms are the sole gainers, up 0.33% and 0.7%, respectively.

Global stock markets are weighed down by bond market volatility. "Record valuations and narrow breadth are persisting concerns for equity investors," said Rosenberg Research in its 'Early Morning With Dave' note. Elsewhere, Scotiabank in its morning note, noted that as part of the extended reaction in bond markets, pricing for the Federal Reserve's and Bank of Canada's actions this year continues to be scaled back. Scotia said cumulative Fed easing this year has been pared by another few basis points to an even single 25bps cut for the year as a whole and with only another 25bps cut priced for all of next year. Cumulative BoC easing this year has been shaved by another 8bps this morning to less than 50bps of additional cuts, it added.

Commodity prices were mixed, with oil prices rising to a five-month high early on Monday as traders assess the risk to supply following tightened U.S. sanctions on Russia's oil exports. Natural gas traded at the highest in more than two years as cold weather over most U.S. states hikes heating demand. But gold traded lower as the dollar rose to the highest in more than two years.

BMO in its morning note, noted global equity markets were "mixed with a downward skew" last week, as the Nasdaq (-2.3%) and S&P (-1.9%) led the way lower. The CAC (+2%) and DAX (+1.6%) were at the top of the leaderboard. The TSX was middle of the pack, down 1.2%, leaving it about flat a couple of weeks into the new year. Most TSX sectors were lower, health care (-4%), tech (-3.8%) and communication services (-2.9%) seeing the deepest decline. Materials (+1.8%) and energy (+1.2%) helped limit the index losses.

On the economics data front, BMO noted it's a quiet start to the week in Canada with no top tier releases and nothing out until Wednesday. BMO said the highlight this week will be December home sales. According to BMO, they look to rise 13.5% y/y, which would be a modest pullback on a monthly basis. "Expect a mixed bag, with Toronto slowing sharply, while other parts of the country performed better. Price momentum looks to continue improving," BMO added.

BMO noted this week's other highlight is Thursday's speech from Bank of Canada Deputy Governor Gravelle. He'll provide the annual update on the BoC's balance sheet normalization and if thinking has changed on when QT will end and how the BoC will expand its balance sheet thereafter. BMO said QT will likely end later this year, with the timing somewhat in flux given the various moving parts on the Bank's balance sheet. Gravelle noted in his last speech on normalization that the Bank will use term repos and treasury bills to expand the balance sheet once QT ends. BMO will be watching to see if anything has changed on that front.