The Toronto stock market opened sharply lower open Tuesday as global growth concerns pushed commodity prices lower for a second day.
The S&P/TSX Composite Index stumbled badly at the open, losing 190.70 points, or 1.5%, to 12,333.25
The Canadian dollar slid 0.67 cents to 99.89 cents U.S.
Traders also took in a strong earnings report from Scotiabank. The bank’s quarterly profits rose to $1.44 billion, or $1.20 per share, up from $1.25 billion or $1.08 per share a year ago. Revenue grew to $4.64 billion from $4.19 billion.
Scotiabank also upped its dividend by three cents a share to 55 cents.
In other earnings news, Uranium One Inc. improved its fourth-quarter results in 2011 helped by the absence of a series of one-time items booked a year earlier.
The company, one of the world’s largest publicly traded uranium producers, posted a $1.1-million loss in the fourth quarter, or nil per share, compared to a $112.9 million loss a year ago. Revenue grew to $157.9 million from $152.3 million.
ON BAYSTREET
The TSX Venture Exchange plummeted 49.29 points to 1,606.51, while the Nasdaq Canada index dipped 9.56 points to 403.87
All 14 Toronto subgroups began the day trying to dig out of the red. Metals and mining stocks got bruised 3.8%, their cousins in global base metals suffering 3% and materials off 2.9%.
ON WALLSTREET
In New York, stocks sold off sharply at the open Tuesday, as world markets sold off amid economic growth worries in China and Europe.
The Dow Jones Industrials fell 160.33 points, or 1.2%, to start Tuesday at 12,802.50. Caterpillar, Bank of America and Alcoa were the biggest drags on the blue-chip index.
The S&P 500 listed lower 16.09 points to 1,348.24, while the Nasdaq tumbled 43.89 points to 2,906.59
Shares of Chesapeake Energy were down slightly in premarket trading after the company announced a partnership with KKR to invest in mineral interests and royalties in key domestic oil and gas basins.
Online jobs search firm Monster Worldwide's shares spiked almost 8% after the company announced it had retained Stone Key Partners and BofA Merrill Lynch to review "strategic alternatives."
While the company did not reveal its specific plans, hiring bankers to pursue alternatives often includes options like a potential sale or spinoff.
Dick's Sporting Goods reported quarterly earnings of 88 cents a share on $1.6 billion U.S. in revenue, matching analysts' estimates. Shares were down 1.5% in premarket trading.
European stocks fell Tuesday after the statistical office of the European Union said the continent's economy contracted by 0.3% in the fourth quarter, compared with third-quarter growth of 0.1% in the euro-zone and 0.3% in the E.U.
Investors are also keeping a wary eye on Greece, where private sector bondholders need to officially agree to a crucial restructuring of the nation's debt this week. If bondholders do not sign on in sufficient numbers, Greece's bailout could be in jeopardy and the nation could face a hard default.
Asian markets declined for a second day on Chinese Premier Wen Jiabao's lower target for China's economic growth -- underscoring the need to make the country's breakneck development more sustainable.
Stocks have had a good run of late, so it's not a surprise to see some pullback, according to some experts.
Investors will be on edge leading up to a big news day on Friday, when the February jobs report will be released. Also coming later this week are reports on consumer credit, productivity and the U.S. trade balance.
Treasury prices for the 10-year note hiked, lowering yields to 1.95% from Monday’s 2.00%. Treasury prices and yields move in opposite directions.
Oil for February delivery ditched $1.83 to $104.85 U.S. a barrel.
Gold futures for April delivery fell $32.80 to $1,670.90 U.S. an ounce.
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