Stock markets around the world, particularly in Toronto, continued their downward journey Friday, following more disappointing news out of China.
The S&P/TSX composite index declined 263.33 points, or 1.9%, to finish the day and week at 13,473.67, a level not seen in more than a year and a half.
The Canadian dollar fell 0.51 cents at 75.90 cents U.S.
In sectors, health-care issues such as Valeant Pharmaceuticals fell on the heels of reports that said it is close to buying Sprout Pharmaceuticals, maker of the first "female Viagra."
Metals and mining stocks also got roughed up, as First Quantum Minerals slumped 54 cents, or 7.4%, to $6.79, and Nevsun Resources capsized 13 cents, or 3.5%, to $3.64.
Consumer staples such as Alimentation Couche-Tard stumbled $3.34, or 5.9%, to $54.58, while Maple Leaf Foods were 69 cents, or 3.1%, to the bad, at $21.56.
Only telecoms held out against the negative tide, as Rogers Communications prospered $1.01, or 2.2%, to $46.90, while BCE Inc. moved up 77 cents, or 1.4%, to $54.65.
Bombardier was the most actively traded stock, gaining two cents, or 1.6%, to $1.29, on 13.1 million shares.
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 11.4 points, or 2.1%, to 537.52.
All but of the 14 TSX subgroups were lower on the day, as health-care and metals and mining each ditched 3.3%, while materials sank 3%.
Only telecoms fared well, and only 0.8% at that.
ON WALLSTREET
U.S. stocks closed deep in the red on Friday as global growth concerns accelerated selling pressure to push the Dow and NASDAQ into correction territory.
The Dow Jones industrial average jettisoned 530.94 points, or 3.1%, to end the week at 16,459.75
The major averages had their biggest trade volume day of the year and posted their worst week in four years.
The Dow closed at session lows, in correction territory for the first time since 2011 as all blue chips declined. The last time the index closed more than 500 points lower was on Aug. 10, 2011. In the last five years, the index has only had four instances with closing losses of more than 400 points.
The index has fallen 1,017 points this week and is off 1,230 points for August. The index has only dropped more than 1,000 points or more in five other months in history, most recently in October 2008.
The S&P 500 dropped 64.84 points, or 3.2%, to 1,970.89, off 7.6% from its 52-week high. The index is off about 4.3% for the year so far. Energy led all 10 sectors lower on the day.
The NASDAQ index tumbled 171.45 points, or 3.5%, to 4,706.04, as Apple declined nearly 6%, in bear market territory
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 increased, lowering yields to 2.05% from Thursday’s 2.07%. Treasury prices and yields move in opposite directions.
Oil prices dropped 99 cents a barrel to $40.33 U.S.
Gold prices added $5.80 to $1,159 U.S. an ounce.
Related Stories
