Canada's main stock index sank to an eight-month low before righting itself somewhat on Tuesday, after a dim outlook for oil demand weighed on the commodity's price and on the shares of energy producers.
The S&P/TSX composite index remained negative 81.39 points to greet noon at 14,145.97.
The Canadian dollar dropped 0.29 cents at 89.02 cents U.S.
Markets in Canada were closed Monday for Thanksgiving.
At its lowest Tuesday morning, the market's benchmark TSX index had shed 10.5% since hitting a record high last month.
The International Energy Agency cut its forecast for growth in oil demand in 2014 and said that it expects demand growth in 2015 to be much weaker than it had previously forecast.
The Toronto stock market's heavyweight energy sector is down about 26% since mid June. The market's benchmark TSX index has also been diving, shedding 10.5% since hitting a record high last month.
Shares of energy producers dropped as the price of Brent crude oil fell 2.6%. Canadian Natural Resources gave back 5.5% to $36.38, and Suncor Energy lost 2.4% to $35.79.
Financials, the index's most heavily weighted sector, declined as Royal Bank of Canada was down 1.3% at $78.63, and Bank of Nova Scotia fell 1.3% to $67.11.
ON BAYSTREET
The TSX Venture Exchange faded 15.78 points to 811.35.
Among the 14 Toronto subgroups, eight had rallied by midday, led by gold, stronger by 4.4%, materials, gaining 3%, and global base metals, 2.6% to the good.
The half-dozen laggards were weighed most by energy, down 1.2%, consumer discretionaries, off 1%, and health-care, sliding 0.9%.
ON WALLSTREET
U.S. stocks rose on Tuesday amid positive earnings results, rebounding after three days of brutal losses that sent the main benchmarks to their lowest levels in months.
The Dow Jones Industrials shot higher 127.48 points to 16,448.55.
The S&P 500 advanced 23.35 points to 1,898.09. The NASDAQ index hiked 63.50 points to 4,277.16.
The S&P 500 on Monday closed at its lowest level since May 20 and fell below its 200-day moving average for the first time in nearly two years. The S&P 500’s breach of its moving average is significant because some market observers see it as a bearish signal that the market may be in store for further declines.
Citi shares popped up 2.9% after third-quarter profit and revenue rose from the year-earlier period. Citi also plans to pare back from retail banking in smaller countries.
Meanwhile, Wells Fargo & Co. shares slipped 2.2% even as the bank’s quarterly profit met expectations but revenue beat estimates.
J.P. Morgan Chase & Co. swung to a third-quarter profit as the bank rebounded from a year-earlier period in which it was hit by big legal charges. The bank’s profit per share and revenue narrowly missed expectations. J.P. Morgan shares fell 1.7%.
Johnson & Johnson shares picked up 1.6% after quarterly earnings climbed nearly 30% on higher pharmaceutical sales.
Domino’s Pizza Inc. was up 4.3% after the chain delivered better-than-expected results.
Among other stocks in focus, Versar Inc. surged 37%. Its PPS unit makes hazmat suits and mobile decontamination shelters. Other stocks linked to concerns over the Ebola virus continued a pattern of pushing higher.
Lakeland Industries Inc. and Alpha Pro Tech Ltd. fell more than 20%, after soaring during the previous few sessions on Ebola fears.
In economic data, National Federation of Independent Business said its small-business optimism index fell 0.8 points to 95.3, which is five points below the pre-recession average.
Prices for 10-year U.S. Treasuries spiked, lowering yields to 2.23% from Monday’s 2.29%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.15 to $84.59 U.S. a barrel.
Gold prices gained $2.40 to $1,232.50 U.S. an ounce.
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