After a promising opening, markets have deteriorated through the morning.

At midday, the TSE 300 is down 39 points to 7,708.

Volume is about average at 83.5 million shares, with selling outnumbering buying by about 21:17. Market breadth is also negative with losers holding an eight to five edge over winners.

News of easing tensions in the Middle East has oil prices sliding and energy stocks are down in step, off about 2%. Golds are also slumping behind this trend. But there’s also some selling in the broader market of industrials, miners and materials stocks.

Tech stocks are one area of strength after an encouraging forecast from Compaq Computer. Telecoms and consumer stocks are also rising.

Weakness in the energy sector is led by Encana (the new PanCanadian-AEC combo). There’s also selling in Koch Pipelines, Rio Alto, Pembina and Bonavista Petroleum.

Ketch Energy is a notable loser, too, down almost 6% on strong volume. It says that it has entered into an agreement with a syndicate of underwriters for a $16 million bought deal. The syndicate is led by Griffiths McBurney & Partners and includes TD Securities Inc., BMO Nesbitt Burns Inc., FirstEnergy Capital Corp., National Bank Financial Inc., Yorkton Securities Inc., Sprott Securities Limited and Salman Partners Inc.

Barrick is leading the golds down, off 1%, as gold prices slide about 2%. Kinross is down notably too.

Other big cap losers include Alcan, Bombardier, CHC and both Bank of Montreal and Royal Bank.

Nortel Networks is actually up 2% today on seemingly bad news. Volume is heavy at 10.7 million shares.

Nortel revealed that it expects to report lower-than-expected revenues of approximately US$2.9 billion for the first quarter of 2002. However, the company expects to report bottom-line improvements for the first quarter, compared with fourth quarter of 2001, in line with its earlier expectations.

Nortel has also given notice to its banks that the company will fully draw on its US$1.75 billion bank facility and plans to exercise its one-year term loan option to obtain an additional year of liquidity under the facility.

Celestica is gaining today, too. As are BCE Emergis, CGI Group, Isotechnika, and Mosaic Group.

BCE’s daily gyrations continue, too. Today it’s up about 2% on strong volume.

The winners’ circle also includes Fairfax Financial, Bennett Enviro, Quebecor, Thomson and Dofasco.

In business news, Pioneer Natural Resources has purchased an additional 30% working interest in the Falcon field in the deepwater Gulf of Mexico for $55 million. It is also spending $138 million for the remaining 23% of a field in the Texas Panhandle. It intends to sell 10 million shares to finance the acquisitions.

Also, Luxell Technologies has completed its previously announced common share offering for $15 million. Canaccord Capital Corp. led the underwriting of the offering, together with a syndicate of underwriters consisting of CIBC World Markets Inc. and National Bank Financial Inc.

In New York, the trends have been much the same, with a strong opening grinding lower throughout the morning. At midday, the Dow Jones industrial average is still clinging to an 18-point gain at 10,267. The Nasdaq composite index has slipped underwater though, down 19 points to 1,767. The S&P has lost three ticks to 1,123.

The S&P/CDNX index is down four points to 1165. Volume is average there too at 17 million shares. William Multi-Tech Inc. is the top trader, flat at 2¢. But it has moved 2.2 million shares.