The Toronto stock market was sharply lower Tuesday as global growth concerns pushed commodity prices lower for a second day.
Uncertainty over the level of participation by private creditors in Greece’s planned bond swap also discouraged buyers.
The S&P/TSX Composite Index was plumbing new lows for the day, and still behind 212.98 points, or 1.7%, at noon to 12,310.97
The Canadian dollar slid 0.70 cents to 99.86 cents U.S.
Strong Chinese growth has been an important prop for a global economy still struggling to recover from the 2008 financial crisis, and that growth has also supported higher commodity prices and rising stock prices on the resource-heavy Toronto stock market.
Other data showed that fourth quarter economic growth in the euro-zone was weak. Gross domestic product dropped 0.3% from the previous quarter, with weakness across all the subcomponents.
Copper was among the biggest commodity losers Tuesday, as the May contract on the New York Mercantile Exchange lost 10 cents to $3.76 U.S. a pound on top of a four-cent loss Monday amid demand concerns. China is the biggest consumer of the metal, widely viewed as an economic barometer because it is used in so many businesses.
The base metals sector backed off as Teck Resources fell $1.29 to $34.91 and First Quantum Minerals lost 95 cents to $21.
The energy sector lost strength as crude lost in price. Canadian Natural Resources dropped 82 cents to $34.79 and Suncor Energy was down 70 cents to $34.11.
The gold sector fell and Barrick Gold Corp. shed 63 cents to $45.75 and Goldcorp Inc. faded $1.30 to $46.35.
The financials sector was down amid 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 but its shares slipped 21 cents to $53.50.
Research in Motion Ltd. continued to lose ground, down 12 cents to $13.13 after Northern Securities analyst Sameet Kanadehas lowered his 12-month target on the stock to $7 from $24 and downgraded his recommendation to sell from speculative buy. He said the company’s "cash cow" services business is heading for a decline thanks to market share gains by rivals including Apple Inc.
Its shares were also under pressure late last week after Jefferies & Co. cut its earnings estimate and said there was a greater than 50% chance that the BlackBerry maker will miss its device sales forecast for the fiscal fourth quarter, which ended in February.
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 and its shares lost nine cents to $2.97.
Shares in telecom equipment supplier software company DragonWave Inc. fell 41 cents, or 9.72%, to $3.81 after it said its revenue in the just-ended fourth quarter was below the company’s expectations due to delays in shipments to customers in various regions. The new revenue estimate is $9.4 million U.S.
Heavy equipment, industrial component and power system provider Wajax Corp. was one of the few positive stocks. Its shares gained $2.12, or 4.8%, to $46.21 as it raised its monthly dividend by 35% to 27 cents a share.
It also reported a fourth-quarter profit of $16.6 million or $1 per share, up $15.8 million, or 95 cents per share, from a year-earlier
ON BAYSTREET
The TSX Venture Exchange plummeted 55.21 points to 1,600.59, while the Nasdaq Canada index dipped 10.54 points to 402.89
All 14 Toronto subgroups began were still in the red by noon. Metals and mining stocks got bruised 4.2%, their cousins in global base metals suffering 3.1% and materials off 2.9%.
ON WALLSTREET
In New York, stocks followed global markets lower Tuesday on worries about slowing growth in China and the debt crisis in Europe.
The Dow Jones Industrials fell 169.26 points, or 1.3%, by noon to register at 12,793.50. Caterpillar, Bank of America and Alcoa were the biggest drags on the blue chip index.
The S&P 500 listed lower 19.10 points to 1,345.23, while the Nasdaq tumbled 41.11 points to 2,909.37
Stocks were pressured by weaker economic data out of Europe and a jump in yields for Spanish bonds, said one expert. But he added "some trimming back isn't a surprise" given the market's recent rally.
Stocks have risen steadily this year, reaching the highest levels since 2008 in recent days. Accordingly, many analysts have been anticipating such a pullback.
Shares of Chesapeake Energy fell 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 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.
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 $1.49 to $105.23 U.S. a barrel.
Gold futures for April delivery fell $32.80 to $1,670.90 U.S. an ounce.
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