The Toronto stock market headed for another losing session Thursday, a day after plunging oil prices and a selloff in energy stocks helped push the TSX into correction territory.
The S&P/TSX composite index tumbled 342.78 points, or 2.4%, to close Wednesday at 13,852.95.
The Canadian dollar fell 0.06 cents to 87.03 cents U.S. early Thursday.
The sharp drop Wednesday left the TSX down 12% from its 2014 highs racked up in mid-summer and now is a bare 230 points or 1.7% above where it started the year.
A drop of 10% or more from recent highs is considered a correction.
Many energy companies have been reacting to sharply lower oil prices by cutting their capital spending estimates. Cenovus Energy joined that group Thursday as the company announced it is cutting 2015 capital spending to between $2.5 billion and $2.7 billion, down about 15% from 2014 levels.
Travel company Transat A.T. Inc. reported quarterly net income of $30.6 million, down 44% from a year earlier. Adjusted earnings dropped to $49.4 million or $1.27 per share from $54.8 million or $1.40 per share. Revenue was $844.7 million, up 4.5% from $808.6 million a year ago
On the economic calendar, Statistics Canada's New Housing Price Index rose 0.1% in October, following an identical increase in September.
ON BAYSTREET
The TSX Venture Exchange let go of 16.97 points Wednesday to 672.61
ON WALLSTREET
It looks like markets could break their three-day losing streak Thursday.
Ahead of the opening bell, futures for the Dow Jones Industrials retrieved 32 points, or 0.2%, to 17,574. Futures for the S&P 500 inched up four points, or 0.2%, to 2,030.50, and futures for the NASDAQ added four points, or 0.1%, to 4,231.
Investors have grown increasingly nervous over the past few weeks as they consider how plunging crude oil prices will damage the oil industry and the energy boom that has helped the U.S. recovery.
Oil prices have fallen by roughly 40% since June. U.S. crude futures are staging a modest recovery Thursday, trading just above $61 U.S. per barrel.
That's helping some firms in the sector: Transocean and Halliburton are rising by 2% pre-market.
Shares in BP are also up by about 0.5% in London. The company said Wednesday it may cut back spending due to the tough market environment.
Lululemon and RadioShack will report quarterly earnings before the opening bell. Adobe Systems will report after the close.
Economically speaking, the U.S. government will post weekly jobless claims and monthly retail sales this morning.
European markets were dipping in early afternoon trading, while all major Asian markets ended with losses.
Oil prices faded six cents to $60.88 U.S. a barrel
Gold prices gave back five dollars to $1,224.40 U.S. an ounce.
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