Equities in this country fell on Wednesday, extending the biggest drop in almost three months, as data showing a record trade deficit in March fueled declines in commodity and industrial shares.
The S&P/TSX Composite Index dropped 75.68 points to finish Wednesday at 13,632.
The index suffered its third straight loss after capping three weeks of gains that left it among the best-performing developed markets in the world this year.
The Canadian dollar slid 0.9 cents to 77.69 cents U.S.
Materials producers slumped Wednesday, as metals from copper to gold retreated. Energy producers fell as crude fluctuated in New York, after declining 5.2% in the previous three sessions.
Oil companies including Suncor, Shell and Syncrude Canada Ltd. have curbed output in Canada’s main oil-sands region after wildfires forced tens of thousands of people to flee Fort McMurray, Alta. Imperial Oil, Devon Energy and Cenovus Energy said the fires aren’t affecting operations.
Suncor shares fell 77 cents, or 2.2%, to $34.18, while Imperial crept up four cents to $40.37, and Cenovus fell 10 cents to $18.88.
Bank of Nova Scotia dropped 82 cents, or 1.3% for a third straight decline, to $62.61, extending losses during that period to almost 5% after Canada’s third largest lender said it will post a $275-million restructuring charge in the second quarter to cover the cost of job cuts and other productivity enhancements as it shifts to digital banking.
Consumer staples had something of a banner day, as Maple Leaf Foods Inc. jumped $1.79, or 6.8%, to $28.03, after posting first-quarter earnings ahead of analysts’ estimates as margins improved.
Torstar Corp. sank 12 cents, or 5.9%, to $1.90, after posting a first-quarter loss amid the challenging print advertising environment.
On the economic slate, Statistics Canada reported that our exports fell 4.8% to $41 billion in March, while our imports dipped 2.4% to $44.4 billion. As a result, Canada’s trade deficit with the rest of the world widened from $2.5 billion in February to a record $3.4 billion in March.
ON BAYSTREET
The TSX Venture Exchange dropped nine points to 653.37
Eight of the 13 TSX subgroups moved down as metals and mining stocks dumped 4.7%, while gold settled 3.1%, and materials eased 2%.
The five gainers were led by consumer staples, ahead 1%, while information technology and health-care each climbed 0.8%.
ON WALLSTREET
Stateside stocks traded lower Wednesday after mixed data, with energy among the greatest decliners and utilities leading.
The Dow Jones Industrials dropped 99.65 points to 17,651.26, with Caterpillar leading decliners and McDonald's the top gainer. The Golden Arches stock hit an all-time high in intraday trade.
The S&P 500 let go of 11.7 points to 2,051.67, with industrials leading seven sectors lower and utilities the top gainer.
Observers noted that the Dow and S&P 500 were about 4% below their 52-week intraday highs Wednesday.
The NASDAQ Composite Index ditched 37.58 points to 4,725.64. The index was within 0.5% of falling back into correction territory, or more than 10% below its 52-week intraday high. Apple held more than 1% lower
On the economic slate, the Institute for Supply Management’s non-manufacturing sector for April was 55.7, above expectations and rising from March's 54.5 print.
The final April read on Markit services Purchasing Managers’ Index rose to 52.8 from 51.3 in March.
Factory orders rose 1.1%. Moreover, the March U.S. trade deficit was $40.4 billion. First quarter productivity declined at an annual rate of 1%.
Ahead of the highly anticipated non-farm payrolls report due Friday, the ADP employment report for April missed expectations with a decline from the prior month to 156,000.
Prices for the 10-year Treasury recouped lost ground, lowering yields to 1.77% from Tuesday’s 1.8%. Treasury prices and yields move in opposite directions
Oil prices gathered 24 cents a barrel to $43.89 U.S.
Gold prices loosed $6.65 to $1,279.85 U.S. an ounce.
