North American markets traded lower Monday morning as mixed news on the economic front, oil prices and politics combined to dampen investor enthusiasm.

In Toronto, the S&P/TSX composite was off 12.75 points of 0.15% to 8321.54. The TSX Venture Exchange was the only market to finish the morning in positive territory – it gained 2.65 points or 0.17% to 1523.8.

In New York, the Dow Joes industrial average was down 21.59 points or 0.321% to 10173.42 after an opening drop of 29 points. The Nasdaq composite index slid 18.6 points, or 1.0% to 1843.49 and the S&P 500 slipped 4.18 points or 0.38% to 1103.59.

The Canadian dollar was down 0.26 of a cent to US75.84¢ even as Statistics Canada came out with positive trade data.

Oil prices, which had dipped last week, closing at US$43.18 per barrel in New York on Friday, down from a record US$49 per barrel, were on the rise again. U.S. light crude climbed 29¢ to US$43.47 a barrel, as Iraq’s oil exports continued at more than 30% below normal after sabotage attacks on pipelines. Turmoil in Iraq and frequent attacks on oil infrastructure have been a major factor in underpinning the sharp rally in crude prices this year.

The head of the Organization of the Petroleum Exporting Countries said on Monday that the group, which controls more than half of world exports, aimed to increase spare output capacity by about one million bpd in the next few months in an effort to bring down sky-high prices. OPEC will meet in Vienna next month to discuss whether to increase its official output ceiling to combat rising oil prices.

On the economic front, Canada’s current account surplus with the rest of the world, on a seasonally adjusted basis, increased by $2.2 billion to $10.4 billion in the second quarter, which is its second highest level ever. Statistics Canada said a surging surplus for goods trade more than offset weakness in other current account transactions. The surplus on trade in goods increased to $20 billion in the second quarter, up $3.6 billion from the first quarter.

Economist liked the big picture generally, despite the fact the overall number was lower than expected. “Canada’s current account has likely peaked for this year, but the position remains very healthy and a strong positive for the Canadian dollar,” said BMO Nesbitt Burns chief economist Sherry Cooper.

In the U.S., a U.S. Commerce Department report showed that American consumers boosted their spending by a strong 0.8% in July in a hopeful sign the economy may be emerging from a summer funk. The increase from June’s 0.2% decline is slightly better than the 0.7% increase some economists were expecting. But despite the increase in spending, Americans’ incomes rose by only 0.1% in July, far less than the 0.5% forecast by economists and down from a 0.2% rise in June.

On Bay Street, TSX opened the day in the black but fell back as tech stocks (off 2.06%) and energy stocks (down 0.35%) pulled the market down. Gold issues were up 0.54%, while financials closed the morning up 0.06%.

Among the most active issues were Nortel Networks, down 3.76% with more than 3.4 million shares trading hands; and Bombardier Inc., which was up 1.1% on volume of 1.1 million shares as the company was part of a $15.8-billion contract to upgrade key railway lines in China. Royal Bank continued to lose ground following Friday’s disappointing earnings report. Its shares were off 1.72% on heavy volume.

Overall, however, many market watchers are expecting a slow week as many on Wall Street appear to have elected to escape New York City as it plays host to the Republican National Convention. “It is likely to be another very slow volume week, but we may be setting up for a nice post-Labor Day rally,” one analyst told his clients.

Overseas, France’s AC 40 was down 0.42% just before the close and Germany’s DAX declined 0.78%. London’s FTSE 100 was closed for a British bank holiday.

Tokyo’s benchmark Nikkei Stock Average of 225 issues fell 25.06 points, or 0.22% to 11,184.53.

In Hong Kong, the Hang Seng Index rose 59.36 points or 0.46% to 12,877.78.