Canada's main stock index sank on Friday to its lowest in one and a half years on persistently grim global sentiment following more disappointing data out of China.
The S&P/TSX composite index declined 159.17 points, or 1.2%, to greet noon at 13,577.83, a level not seen since February 2014.
The Canadian dollar slid 0.4 cents at 76.02 cents U.S.
Canadian Natural Resources fell 2.8% to $26.77.
Convenience store operator Alimentation Couche-Tard lost 4.6% to $55.35.
Royal Bank of Canada fell 1.4% to $73.06 and was among the biggest drags on the TSX. Manulife Financial Corp was down 3.1% at $20.66.
In corporate news, Eldorado Gold Corp shares plunged 12.3% to $4.57 after the company said on Thursday it suspended mining activities in northern Greece.
Global equity markets plummeted toward their worst week this year while the beating in commodities continued as data out of China showed manufacturing in the country was slowing at the fastest pace since the financial crisis in 2009.
On the economic front, Statistics Canada reported this morning that the consumer price index rose 1.3% in the 12 months to July, after increasing 1.0% in June.
The agency says lower energy prices continued to moderate the year-over-year rise in the CPI; however, the effect was less pronounced in July than in the previous month. In particular, the gasoline index was down 12.2% in the 12 months to July, compared with a 14.1% decrease in June.
Elsewhere, retail sales increased 0.6% to $43.2 billion in June. Sales were up in eight of 11 sub-sectors, representing 64% of retail
trade.
ON BAYSTREET
The TSX Venture Exchange plunged 9.07 points to 539.85.
All but one of the 14 TSX subgroups were lower midday, with metals and mining down 2.2%, health-care off 2%, consumer staples sinking 1.9%.
The lone gainer was in telecoms, up 0.9%
ON WALLSTREET
U.S. stocks plunged on Friday, extending a recent rout, as concerns about slowing global growth continued to pressure investor sentiment.
The Dow Jones industrial average plummeted 295.49 points, or 1.7%, to 16,695.20, with Boeing leading decliners and Cisco the greatest advancer.
The S&P 500 dropped 28.96 points, or 1.4%, to 2,006.77, off more than 6% from its 52-week high. The index is off more than 3 percent for the year so far. All 10 sectors of the index declined.
The NASDAQ index tumbled 78.89 points, or 1.8%, to 4,798.60, with Apple declining more than 3%.
The major averages accelerated selling in late morning trade to fall more than 1.5%, on track for their worst week since 2011. Earlier, the averages briefly attempted to halve losses in mid-morning trade.
On the earnings front, Deere and Foot Locker posted results before the market open.
Deere earned $1.53 U.S. per share for its third quarter, nine cents above estimates. However, revenue was below forecasts and Deere also lowered its forward guidance. The company said it is being impacted by a downturn in the farm economy and lower demand for construction equipment.
Foot Locker earned 84 cents U.S. per share for its second quarter, 15 cents above estimates. Revenue was above analysts' forecasts as well, and a same-store sales increase of 9.6% exceeded estimates of a 6% rise.
The U.S. flash manufacturing PMI came in at 52.9, slightly below expectations.
Prices for 10-year U.S. Treasuries hesitated a bit, raising yields to 2.08% from Thursday’s 2.07%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.20 a barrel to $40.12 U.S.
Gold prices added $7.50 to $1,160.70 U.S. an ounce.
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