The Toronto stock market was down sharply Monday, adding to last week's sharp losses amid signs that the U.S. Federal Reserve is getting ready to cut back on stimulus and more worry about China's economic rebound.
The S&P/TSX Composite Index dropped 158.80 points, or 1.3%, to end Monday at 11,836.86
The base metals sector declined as July copper on the New York Mercantile Exchange moved closer to the three-American-dollar level, down another seven cents to $3.02 U.S. a pound. Teck Resources shed $1.30 to $21.47 while First Quantum Minerals fell $1.27 to $14.35.
The gold sector tumbled as Goldcorp Inc. fell 51 cents to $25.09.
Elsewhere in the gold sector, slumping gold prices have resulted in Barrick Gold Corp. intensifying its downsizing plan. The miner is eliminating about 100 jobs or almost a third of its corporate staff at its headquarters in Toronto and other offices.
Barrick is also dealing with operational and regulatory issues at some of its mines and projects. Barrick shares fell 24 cents to $17.47.
The energy sector fell while Cenovus Energy declined 77 cents to $28.81.
Traders also looking at what damage heavy rains and flooding will have on Alberta's energy business.
Enbridge Inc.is working to contain and clean up a weekend spill of synthetic crude into a wetland area and small lake in northern Alberta. Enbridge also shut other pipelines in the area as a precaution, including the Athabasca and Waupisoo pipelines, as the province grapples with major flooding, including in the city of Calgary where Enbridge has its head office.
Enbridge said in its initial assessment that unusually heavy rains may have resulted in a ground movement that affected the pipeline, which is part of its Athabasca network. Its shares were down $1.31 to $42.20.
The industrial sector fell as Canadian Pacific Railway gave back $2.57 to $121.53.
Rising U.S. bond yields also put pressure on interest sensitive stocks on the TSX. In the utilities sector, Just Energy Group fell 36 cents to $6.29. Telecoms also fell with BCE Inc. down 54 cents to $43.06.
ON BAYSTREET
The TSX Venture Exchange let go of 15.77 points to 880.02
All 14 Toronto subgroups remained negative, weighed mostly by metals and mining, tanking 6.4%, gold, off 4.2%, and global base metals, down 4%.
ON WALLSTREET
U.S. stocks shaved most of their early losses but still finished in the red Monday afternoon as worries about the Fed easing up on stimulus and credit problems in China kept investors on edge.
The Dow Jones Industrials flopped 139.84 points to 14,659.
The S&P 500 index fell 19.34 points to 1,573.09. The tech-rich NASDAQ Composite dumped 36.49 points to 3,320.76
Shares of Vanguard Health Systems surged almost 70% after inking a $1.8-billion U.S. acquisition deal with Tenet Healthcare Corp.
Apple shares briefly fell below $400 U.S. a piece for the first time since mid-April after on analysts lowered his 12-month price target to $405 U.S. to $420 U.S.
The People's Bank of China told the country's largest banks Monday to rein in risky loans and improve their balance sheets, a warning that sent a jolt through already unsettled equity markets.
Prices for the 10-year U.S. Treasury against tumbled, boosting yields to 2.55% from Friday’s 2.52%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.27 to $94.96 U.S. a barrel.
Gold prices dropped $9.60 to $1,282 U.S. an ounce
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