"Obviously there's not going to be any major resolution," he said. "They will try to make some kind of a small dent in the problem." After that, Masionis added, the US federal debt limit will be a major problem. The Toronto Stock Exchange's S&P/TSX composite index closed down 57.65 points, or 0.47 percent, at 12,316.12. It edged down 0.6 percent for the week.
"The volumes are quite low, and if you combine that with the short-term uncertainty of the 'fiscal cliff' in the United States it's a real recipe for a downward market," said Arthur Salzer, chief executive of Northland Wealth Management. The materials sector, home to miners, pulled the market lower, led by gold stocks as the price of gold fell. The sector slid 0.8 percent. Goldcorp Inc fell 1.5 percent to C$35.45, and Barrick Gold Corp, the world's top gold producer, was 1.1 percent lower at C$33.88.
The financial sector, the index's biggest, was down 0.5 percent. Bank of Nova Scotia was down 0.9 percent at C$57.43, and Royal Bank of Canada fell 0.5 percent to C$59.75. Energy stocks slipped 0.5 percent, tracking a decline in oil prices. Suncor Energy Inc was the most influential decliner, falling 1.2 percent to C$32.22.
In company news, US regulators temporarily suspended trading in Southridge Enterprises Inc two days after the exploration company said it was forming a partnership with Kinross Gold Corp, which Kinross denied. Kinross fell 1.5 percent to C$9.39. Outside the index, Aeterna Zentaris Inc closed up 15.3 percent at C$2.43 after the drugmaker said it had agreed with US regulators on the design of a late-stage trial for its endometrial cancer treatment.