TSX pushed lower by u.s. budget fears

The Toronto stock market ended lower on Monday, as concerns about stalled talks over the U.S. federal budget dominated attention before the Christmas holiday break.

The S&P/TSX composite index was down 14.90 points, to 12,370.80, in a shortened trading session that ended at 1 p.m. ET. The TSX Venture Exchange rose 7.89 points, to 1,185.60.

The Canadian dollar was at US100.8¢, up US0.21¢.

Attention was focused on a deadline for U.S. politicians to avoid a combination of automatic tax increases and spending cuts that will go into effect in the New Year. There’s a fear that the U.S. economy could be pushed into a recession of it goes over the so-called “fiscal cliff.”

The Republican-dominated House has been at odds with the Democrat-controlled White House and Senate over the best way to deal with the U.S. government’s huge deficits. The two sides have been unable to find a workable compromise.

In commodities, the January crude oil contract on the New York Mercantile Exchange slid five cents to US$88.61 a barrel.

March copper was down 1.8¢ at US$3.55 a pound. February gold bullion dropped 50¢ to US$1,658.60 an ounce.

On Wall Street, where markets also closed early, investors appeared to be staying cautious as the budget deadline nears.

The Dow Jones industrials dropped 51.76 points, to 13,139.08, the Nasdaq fell 8.41 points, to 3,012.60 and the S&P 500 index was off 3.49 points at 1,426.66.

North American markets will be closed for the Christmas Day holiday, and the TSX will also be closed on Wednesday for Boxing Day. In corporate developments,

moved to acquire a 50% stake in a proposed liquefied natural gas export terminal near Kitimat, B.C., in a series of deals that will see and sell their parts in the pro

subsidiary and will share the project 50-50. Encana shares were down 47¢ at $19.66 in Toronto. In New York, Chevron slid 98¢ to US$108.63, EOG slipped 80¢ to US$122.77 and Apache dropped $1.32 to $78.68.

Shares of were up 17¢ to $10.83 after the retailer said chief financial officer Sharon Driscoll, who has held the post since December 2010, will leave the company on Jan. 4 to pursue other interests.

Most markets across Europe were only open for half a day and will only re-open again on Thursday. German markets, and others, were closed for Christmas Eve.

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