Toronto dives at open

Canada's main stock index took it on the chin at Tuesday's open, as worries about Greece's ability to secure a bailout in time to avoid a messy default weighed on sentiment.

The S&P TSX Composite Index began Tuesday's session down 123.31 points, or 1%, to 12,436.54

The Canadian dollar gave back 0.10 cents at 100.33 cents U.S.

Canadian stocks to watch this morning include Centerra Gold, whose flagship mine in Kyrgyzastan is the target of a strike by about 1,400 workers, halting production that contributes nearly 12% of GDP in the Central Asian republic.

Bank of Montreal says it will gain ground against foreign rivals to capture 10% of Canada's exchange traded fund market in 2012 as domestic rivals try to decide whether it is too late to enter the burgeoning ETF space, the bank's head of asset management said in an interview.

On matters economic, Statistics Canada reported this morning that municipal building permits totaled $6.8 billion in December, growing 11.1% from November to the highest level since June 2007, due largely to an boost in multi-family dwellings in Ontario and commercial buildings in Alberta.

ON BAYSTREET

The TSX Venture Exchange backpedaled 7.47 points to 1,656.75, while the Nasdaq Canada index dropped 1.45 points to 423.16

All 14 Toronto subgroups went south soon after the opening bell, weighed mostly by metals and mining stocks, off 2%, while energy and global base metals suffered 1.7% each.

ON WALLSTREET

In New York, stocks fell early Tuesday, as investors wait for Greek leaders to agree on the terms of a new bailout package, a key step to avoiding a default.

The Dow Jones Industrials shed 30.24 points soon after Tuesday's open to 12,814.90.

The S&P 500 slid 6.16 points to 1,338.17, while the tech-rich Nasdaq subtracted 10.79 points to 2,891.20

Commodities trader Glencore International agreed to buy Xstrata for $61.9 billion U.S., making it the biggest mining takeover in history. The deal will create a $90 billion company.

Investors also have a smattering of corporate results to parse through on Tuesday.

Oil company BP posted increased fourth-quarter profits and raised its dividend on Tuesday. The company hailed the improved result as a turning point in the long climb back from Gulf of Mexico oil spill of 2010.

But shares of BP slipped, as investors remain wary of how much the spill will cost following a trial that is set to begin later this month.

Shares of UBS lost ground after the Swiss bank posted a 75% drop in its fourth-quarter profit and missed forecasts. The bank also issued a bleak outlook for the current quarter -- noting that concerns over the European debt crisis, U.S. deficit and ongoing uncertainty about the global economic outlook will have a "negative influence on client activity levels."

Yum! Brands' stock spiked after the fast-food operator topped earnings expectations late Monday, thanks to sales growth in China.

Coca-Cola shares edged higher after the beverage maker topped earnings and sales estimates for the fourth quarter.

Walt Disney results are on tap after the bell.

Investors remain on edge over the fate of Greece, as worries about a default resurface. The nation's leaders are expected to meet Tuesday to discuss additional austerity measures.

The government is negotiating reforms needed for Greece to receive a second bailout of €130 billion from the European Union, International Monetary Fund and European Central Bank. Without additional funding, Greece will most likely miss a €14.5-billion bond redemption in March, causing shock waves throughout the global financial system.

In addition to Greece, investors will also be turning their attention to Washington on Tuesday. Federal Reserve Chairman Ben Bernanke will be testifying before the U.S. Senate's budget committee at 10 a.m. ET, when he will discuss the economic outlook and the federal budget.

Investors will be especially interested to hear the Fed chief's thoughts on more stimulus measures, the prospects for which continue to dim -- especially after the monster January jobs report.

On the economic front, the Federal Reserve will release the consumer credit report for December at 3 p.m. ET. Analysts surveyed by Briefing.com expect the report to show that consumer credit expanded by $8.5 billion U.S. in December, much smaller than November's $20.4-billion U.S. expansion.

Treasury prices for the 10-year note drooped, boosting yields to 1.95% from Monday's 1.90%. Treasury prices and yields move in opposite directions.

Oil for February delivery slipped 21 cents to $96.70 U.S. a barrel.

Gold futures for April delivery fell $3.60 to $1,721.30 U.S. an ounce.