Canadian stocks fell Monday, led by losses in the metals and mining sector, after China reduced its economic growth outlook and as data showed that euro-zone business activity fell back into contraction in February.
The S&P/TSX Composite Index ended the day off 119.87 points, or nearly 1%, to 12,523.95
The Canadian dollar slid 0.47 cents to 100.60 cents U.S.
China’s economy grew by 9.2% last year, down from 10.3% in 2010 as the government tries to gradually slow growth and tame high inflation. In addition, many local governments are wracked with debt and with Europe in crisis and the U.S. recovery fragile, demand for Chinese exports is weakening.
Strong Chinese growth has been an important prop for a global economy still struggling to recover from the 2008 financial crisis.
Against that backdrop, Canadian equities followed global stock markets lower. In Toronto trading, shares of Teck Resources Ltd. fell $2.19, or 5.7%, to $36.33. Inmet Mining Corp. lost $5.30, or 8.1%, to $59.97, and First Quantum Minerals Ltd. traded $1.28, or 5.5%, lower to $21.91.
Energy stocks declined, with shares of Talisman Energy Inc. down 21 cents, 1.6%, to $13.36, and Suncor Energy Inc. trading 53 cents, or 1.5%, lower to $34.92. Imperial Oil stock moved lower by 77 cents, or 1.6%, to $46.12
ON BAYSTREET
The TSX Venture Exchange dove 23.07 points to close at 1,655.83, while the Nasdaq Canada index shaved off 6.25 points to 413.43
In all, 10 of the 14 Toronto subgroups were down on the day. Metals and mining fell 4.4%, global base metals 3.1%, and materials lost 2.7%.
The four gainers were led by health-care, 0.4% better, telecoms and real-estate, 0.3% stronger each.
ON WALLSTREET
In New York, stocks declined Monday, following the path of world markets, after China lowered its annual growth target.
The Dow Jones Industrials fell 14.76 points short of breakeven to end the day’s trading at 12,962.80.
The S&P 500 doffed 5.01 points to 1,364.62, while the Nasdaq was weaker by 25.71 points to 2,950.48
Aluminum-maker Alcoa and Caterpillar, which makes construction equipment, were the biggest laggards in the Dow amid worries that slower growth in China could pressure demand for their products.
AOL became the latest advertiser to pull advertising from Rush Limbaugh's radio show in response to his comments about a Georgetown law student who advocated healthcare coverage for contraception. AOL shares were flat Monday.
IBM shares hit all-time high above $200 U.S. share. Citigroup announced that it is exploring possible uses for Watson, IBM's supercomputer that was famous for beating two human contestants on the game show "Jeopardy" last year.
Online reviews site Yelp retreated, falling more than 10% after spiking 64% to top $24 U.S. a share in their debut on the New York Stock Exchange Friday.
BP shares were higher Monday, after the British oil giant and plaintiffs involved in the legal battle over the Gulf of Mexico oil spill said Friday they reached an agreement. BP estimated it would have to pay about $7.8 billion U.S. in the Deepwater Horizon disaster settlement.
Apple said in a post on its website that the tech company has "created or supported" some 514,000 jobs in the United States, either through direct employment, the "App economy" or other means. Shares were down more than 2%, however, ahead of the company's highly-anticipated iPad announcement Wednesday.
Trading could be choppy this week, leading up to a big news day on Friday. On the domestic front, investors will get the latest snapshot of the U.S. labor market, with the release of the February jobs report.
In Europe, Friday marks the deadline for private creditors to sign off on Greece's debt writedown. Greece needs the debt deal to secure its €130 billion rescue package from the euro-zone and avoid default.
Economically speaking, the February edition of the Institute for Supply Management services index rose to 57.3, up from 56.8, which beat expectations.
Last week, the ISM manufacturing index for February slipped to 52.4, from 54.1 in January, indicating a slowdown in the sector's expansion.
Meanwhile, factory orders in January factory decreased 1% -- less than the 1.9% decline analysts were expecting. Factory orders rose 1.4% in December.
Treasury prices for the 10-year note fell again, raising yields to 2.00% from Friday’s 1.99%. Treasury prices and yields move in opposite directions.
Oil for February delivery inched up 18 cents to $106.88 U.S. a barrel.
Gold futures for April delivery fell $5.90 to settle at $1,703.90 U.S. an ounce.
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