Markets in Toronto coming off a rebound last week, slumped more than 1% on Monday as resource stocks resumed their slump on falling commodity prices.
The S&P/TSX composite index came off their lows of the morning, trading 60.08 points behind Friday’s close to greet noon Monday at 13,804.99.
The Canadian dollar docked 0.10 cents to 75.63 cents U.S.
Financial stocks, the sector carrying the most weight on the index, also lost ground, with Royal Bank of Canada stumbling 1.9% to $72.29, and Toronto-Dominion Bank giving up 1.9% to $51.92.
Among energy plays, Suncor Energy fell 2% to $36.06, while among gold stocks, Barrick Gold tumbled 4.7% to $9.00.
ON BAYSTREET
The TSX Venture Exchange eked up 1.44 points to 557.11
All but three of the 14 TSX subgroups were lower midday, weighed mostly by utilities, off 2.3%, gold, regressing 1.5%, and consumer staples, slumping 1.4%.
The three gainers were energy, surging 1.4%, while information technology gained 0.6%, and consumer discretionary stocks inched up 0.1%.
ON WALLSTREET
U.S. stocks traded lower on Monday, the last day of trade for August, as investors eyed a renewed recovery in oil prices and digested recent news out of China and the Federal Reserve following a turbulent markets week.
The Dow Jones industrial average recovered ground, but remained negative 44.46 points to 16,598.55. The index dipped in and out of correction territory (trading at 16,516.22 or below) on an intraday basis.
The S&P 500 eased 6.07 points to 1,982.30, with utilities leading nine sectors lower and energy the only advancing sector. In late-morning trade, index component Signet Jewelers hit an all-time high, while Sempra Energy and Exelon hit fresh 52-week lows.
The NASDAQ index dropped 11.93 points to 4,816.40.
Phillips 66 jumped after Warren Buffett's Berkshire Hathaway disclosed late Friday a $4.48 billion U.S., or roughly 10.8%, stake in the oil refiner.
Crude spiked after the Organization of Petroleum Exporting Countries noted concerns about low oil prices in its publication issued Monday.
No major earnings are due on Wall Street on Monday. The Chicago purchasing managers' index for August came in at 54.4
Federal Vice Chairman Stanley Fischer told the media on Friday from the Jackson Hole symposium that it was too early to determine whether last week's market turmoil would impact the likelihood of a rate hike next month.
He added in a Saturday speech that inflation pressure in the U.S. economy is likely to rebound and allow for a gradual increase in rates.
He and the Bank of England's Governor Mark Carney indicated with their comments that the two central banks could be set to look past recent financial market turmoil set off by fears of slowing China growth.
Prices for 10-year U.S. Treasuries gained, lowering yields to 2.17% from Friday’s 2.19%. Treasury prices and yields move in opposite directions.
Oil prices rebounded from earlier losses and jumped $2.36 a barrel to $47.58 U.S.
Gold prices was lower $1.30 to $1,128.30 U.S. an ounce.
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