The Toronto stock market deepened its decline on Monday as concerns about the Chinese economy, and discouraging signs from early U.S. holiday sales, overshadowed a small gain in crude oil prices.
The S&P/TSX composite index sank 119.38 points to close at 14,625.32
The Canadian dollar recovered 0.82 cents to 88.32 cents U.S.
On the TSX, the mining and metals sector fell, while energy stocks tumbled. Teck Resources dipped 44 cents to $17.20
In the energy sector, Canadian Natural Resources Ltd. is dealing with a spill of about 60,000 litres of crude oil in a remote area of Alberta. The Calgary-based company reported on Thursday that the spill was caused by a mechanical failure near Red Earth Creek, Alta., about 350 kilometres north of Edmonton. Natural Resources shares closed the day up 45 cents to $38.41.
Gold stocks were the biggest gainer, as Barrick Gold added 53 cents to $14.07, while Goldcorp jumped $1.66, or 7.4%, to $24.06.
Weighing on direction is a new Chinese manufacturing activity report that shows weakness in the economy. A survey by HSBC Corp. showed Chinese manufacturing activity weakened in November, adding to signs an economic slowdown is deepening.
HSBC said its purchasing managers' index declined to 50.0 from the previous month's 50.4 on a 100-point scale on which numbers below 50 show activity contracting. The bank said domestic demand was sluggish and new orders were weak. China's economic growth slowed to a five-year low of 7.3 per cent in the latest quarter.
ON BAYSTREET
The TSX Venture Exchange stumbled 16.85 points to 725.02
10 of the 14 Toronto subgroups were lower, principally, industrials, down 3%, metals and mining, down 2.7%, and global base metals, off 1.9%.
The four gainers were led by gold, up 7%, materials, up 2.4%, and consumer staples, up 1%.
ON WALLSTREET
U.S. stocks declined on Monday, with the NASDAQ Composite falling for the first session in seven, as a lackluster start to the holiday shopping season mostly overrode data that had a measure of U.S. factory activity slowing less than expected in November.
The Dow Jones Industrials were negative 51.44 points to 17,776.80, with General Electric leading blue-chip declines that extended to 23 of 30 components.
The S&P 500 dipped 1314.12 points to 2,053.44. The NASDAQ index moved down 58.464.28 points to 4,727.35, halting a six-session win streak
A fall in Apple's shares "may be some evidence of concern of a weak start of what was expected to be a pretty good holiday season on the back of the gas price tax cut," according to one observer.
The Institute for Supply Management said its national factory activity index dropped to 58.7 last month from 59 in October, with the latest figure beating expectations of 57.8.
Americans spent about 11% less during the long holiday weekend ahead of Cyber Monday's online sales, according to survey results released Sunday by the National Retail Federation.
Markit's final November manufacturing Purchasing managers' Index for the euro-zone was 50.1, its lowest level since June 2013.
China's official factory index dropped to 50.3 for November, while the Markit index had it at 50.
Prices for 10-year U.S. Treasuries faded, raising yields to 2.22% from Friday’s 2.20%. Treasury prices and yields move in opposite directions.
Oil prices took on $3.33 to $69.38 U.S.
Gold prices added $35.80 at $1,211.20 U.S.
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