Markets in Toronto took it on the chin early Thursday, in the absence of hard economic data, as macroeconomic statements were made and the federal government weighed in on the prospect of a housing crisis.
The S&P/TSX composite index plunged 124.83 points to open at 14,995.71
The Canadian dollar gave back 0.29 cents to 90.14 cents U.S.
Raymond James raised the rating on Fortuna Silver Mines to strong buy from outperform. Fortuna shares gained a penny to $4.59.
National Bank Financial raised the rating on Northland Power to outperform from sector perform. Northland shares lost two cents to $16.93.
SocGen raised the rating on Talisman Energy to buy from hold. Talisman shares backed off 11 cents to $9.86.
Bank of Canada Governor Timothy Lane said Canadian monetary policy can diverge from that of its neighbour to the south, even as the U.S. Federal Reserve's exit from its extraordinary stimulus measures will likely raise market interest rates in Canada and weigh on the loonie.
Prime Minister Stephen Harper said on Wednesday he did not anticipate a housing crisis in Canada, where some analysts are fretting about high debt levels and a booming housing market.
ON BAYSTREET
The TSX Venture Exchange slid 3.12 points to 920.97.
All but one of the 14 Toronto subgroups were lower on Thursday, as global base metals slid 1.9%, while energy and metals and mining each dropped 1.4%
The lone gainer was health-care, 0.4% to the good.
ON WALLSTREET
U.S. stocks opened lower Thursday, as investors weighed a weaker-than-expected reading on durable-goods orders.
The Dow Jones Industrials erased almost all of yesterday’s gains, dumping 137.49 points to 17,072.57.
The S&P 500 dropped 19.02 points to 1,979.28. The NASDAQ plummeted 65.78 points to 4,489.44.
Jabil Circuit shares rose 1.6% for one of the biggest gains among S&P 500 names. Late Wednesday, the electronics manufacturer’s quarterly results and outlook topped Wall Street estimates.
Apple shares were down 1.4%. The company on Wednesday said it pulled an update to its iOS 8 operating system following reports of major problems for users.
Orders for durable U.S. goods plunged by a record 18.2% in August after a record 22.5% gain in July, mainly because of volatile demand for airplanes.
Economists surveyed by MarketWatch had expected orders to fall by 17.3%.
Meanwhile, the number of people who applied for unemployment benefits last week rose by 12,000 to 293,000, but initial claims continue to hover near an eight-year bottom amid a low rate of layoffs, new government data showed. Economists had expected claims to rise to 300,000.
Prices for 10-year U.S. Treasuries gained, lowering yields to 2.53% from Wednesday’s 2.57%. Treasury prices and yields move in opposite directions.
Oil prices gained 28 cents to $93.08 U.S. a barrel.
Gold prices sank $4.30 to $1,215.40 U.S. an ounce.
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