Markets closed lower Monday amid continuing jitters over war against Iraq. The S&P/TSX composite Index fell 82.19 points to close at 6,277.67.

Markets weakened on the feeling that war is close as the United States and Britain seek support for a March 17 ultimatum for Saddam Hussein to disarm or face war.

All segments of the Toronto market except energy closed lower.

The heavily weighted TSX financial services index dropped 1.53%, while information technology fell 2.58%.

Nortel fell 12 cents to $3.08, while Royal Bank fell $1.52 to $55.86. TD Bank slipped 80¢ to $31.70

Gold led all losers with a 3% retreat, although the bullion price rose US$4.10 to US$354.20 an ounce. Kinross Gold lost 41¢ to $9.53

Investors ignored news of Canada’s red-hot housing market. Canada Mortgage and Housing Corp. reported that housing starts last month were up 34.5% over the January level, blowing past expectations to a level not seen since August 1987.

In energy stocks, Suncor advanced 36¢ to $25.89, while Talisman rose 50¢ to $60.25.

Market momentum was negative as 689 issues declined and 370 advanced. Volume was light as 138 million shares valued at $1.6 billion changed hands.

The TSX Venture Exchange lost 5.91 points at 1,080.64.

The Dow Jones industrial average was down 130.88 points at 7,609.15.

The Nasdaq composite index f fell 23.99 points to 1,281.3 on the third anniversary of its peak at 5,131.52. The S&P 500 was off 18.11 at 810.78.

The Canadian dollar closed up 0.01¢ at US68.25¢