Falling commodity prices pushed Toronto markets lower Monday morning, while the drop in oil gave Wall Street a boost.

At midday, the Standard & Poor’s/TSX Composite Index was down slightly, by 3.63 points or 0.04% to 9278.82, while the TSX Venture Exchange slid 20.42 points or 1.25% to 1612.72.

In New York, the Dow Jones industrial average was ahead by 50.40 points or 0.5% to 10190.52. Broader stock indicators were modestly higher. The Standard & Poor’s 500 index was up 4.85 or 0.42% at 1158.90, and the Nasdaq composite index gained 6.35 or 0.32% to 1983.13.

Canada’s dollar fell to US78.65¢ in Toronto, the weakest since Oct. 5, from US79.03¢ on Friday. Demand for Canada’s currency waned before reports this week forecast to show retail sales dropped and foreigners slowed their purchases of Canadian securities in March. Government reports last week showed factory shipments fell that month and the trade surplus remained at the smallest since December 2002 for a second straight month.

The lower dollar is also a response to a vote in Parliament this week that may determine whether Prime Minister Paul Martin’s 10-month-old minority government will topple and send Canadians back to the polls.

On the TSX, Canadian energy and materials stocks fell, led by Petro-Canada and Barrick Gold Corp., as commodity prices declined. Gains in health-care and financial shares left the benchmark index little changed.

Crude oil for June delivery retreated 1.5% to $47.95 a barrel in New York on expectations U.S. refiners could make enough gasoline for summer and growth in demand would slow in China. It has dropped 18% from a record $58.28 on April 4.

Oil stocks were down 1.41% as Petro-Canada, the nation’s No. 3 oil producer, slipped 54$ to $67.06.

Gold stocks were off 1.17% as gold prices in New York dropped for a third session. The stronger U.S. dollar eroded the appeal of precious metals as an alternative to U.S. assets. Barrick Gold Corp. retreated 37¢ to $26.88.

On Wall Street, the good news on oil helped investors shrug off the latest reading of the Empire State Index, a measurement of New York’s manufacturing sector and a barometer for the rest of the nation. The index dropped sharply this month, showing contraction in the sector when economists had expected strong manufacturing growth instead.

The Wall Street Journal said embattled ensurer American International Group Inc. plans to dismiss at least six other senior executives in connection with the company’s accounting scandal, which forced the departure of former Chairman Maurice “Hank” Greenberg. AIG edged 6¢ higher to US$52.11 on the news.

Overseas, Japan’s Nikkei stock average fell 0.92%. In afternoon trading, Britain’s FTSE 100 was down 0.25%, Germany’s DAX index lost 0.48%, and France’s CAC-40 dropped 0.56%.