Investors were reeling at Wednesday’s closing bell, as heavy losses for energy stocks led Canada’s largest index straight down
The S&P/TSX Composite Index went from positive readings through much of the day to tumbling 111.8 points to close Wednesday at 15,496.86
The Canadian dollar slipped 0.45 cents at 74.11 cents U.S.
Oil prices dropped after an industry report pointed to a large rise in crude inventories in the United States, renewing oversupply concerns despite output curbs by the Organization of the Petroleum Exporting Countries.
MEG Energy took the hardest blows, giving up 55 cents per share, or 7.5%, to $6.78, while Whitecap Resources stumbled 77 cents, or 7.1%, to $10.11.
In the telecom sector, TELUS Corporation dwindled 87 cents, or 2%, to $42.30, while BCE gave back 17 cents or $57.85.
In the consumer staples sector, one of the few positive ones, Loblaw Companies acquired 28 cents to $70.66, while Metro Inc. progressed 54 cents, or 1.4%, to $40.00
Gold climbed above breakeven, on the strength of Barrick Gold, up 21 cents to $24.06, while Agnico Eagle Mines added 42 cents to $54.05.
On the economic slate, Statistics Canada said building permits issued by Canadian municipalities rose 5.4% to $7.6 billion in January, following two consecutive monthly decreases.
The agency added that six provinces posted increases, led by Alberta and British Columbia.
Moreover, Canada Mortgage and Housing Corporation reported housing starts were on pace in February to hit 204,669 units in Canada, whereas January saw them hitting 200,255 units.
ON BAYSTREET
The TSX Venture Exchange hurtled earthward 9.49 points, or 1.2%, to 792.98
All but two of the 12 TSX subgroups crumbled by session’s end, as energy collapsed 4%, real-estate dipped 0.8%, and telecoms were 0.7% to the bad.
The two gainers proved to be consumer staples, up 0.5%, and gold, ahead 0.4%.
ON WALLSTREET
U.S. equities closed mostly lower on Wednesday as investors dealt with plunging oil prices and digested scorching employment data.
The Dow Jones Industrials dropped 69.03 points to conclude Wednesday at 20,855.73, with Caterpillar and Chevron taking the biggest bruising
The S&P 500 doffed 5.41 points to 2,362.98, with energy falling more than 2.5% to lead decliners.
The NASDAQ retained gains of 3.62 points to 5,837.55.
Caterpillar's stock fell $2.70, or 2.8%, to $93.23, after The New York Times reported that a new government report accused the company of using improper accounting methods to boost its stock price.
On the economic ledger, private sector employment south of the border rose by 298,000 jobs last month, according to ADP and Moody's, well above estimates of 190,000. The report encompassed the first full month under President Donald Trump, who has pledged to rebuild the nation's aging infrastructure system.
The data come just days ahead of the U.S. government's non-farm payrolls report.
Other data released Wednesday included fourth-quarter productivity, which remained unrevised at a gain of 1.3%. Wholesale inventories fell 0.2%, more than expected.
The Federal Reserve meets next Tuesday and Wednesday, and experts say the chances for a rate hike this month are at 91%, up from roughly 30% at the start of last week
Prices for the benchmark 10-year Treasury note fell, raising yields to 2.55% from Tuesday’s 2.52%. Treasury prices and yields move in opposite directions.
Oil prices plummeted $2.83 to $50.31 U.S. a barrel
Gold prices doffed $7.50 to $1,208.60 U.S. an ounce.
