The TSX was still in negative territory by mid-afternoon, as the decline in copper and oil prices continued to hurt energy and mining stocks.
The S&P/TSX composite index stumbled 108.13 points to end Monday at 13,353.34
The Canadian dollar inched up 0.03 at 75.3 cents U.S.
Copper and oil prices were lower on Monday, following disappointing economic data that raised concerns about the health of the economy of China, a major consumer of energy and industrial metals. The slower-than-expected growth in investment and factory output in August had investors worried that Q3 might not be looking good for China's economy.
Accordingly, metals and mining stocks got pushed down the most, with Major Drilling Group plummeting 39 cents, or 8.5%, to $4.21, while First Quantum Minerals took it on the chin 59 cents, or 7.6%, to $7.16.
Consumer discretionary issues also had a bad time of it, with Hudson’s Bay Company going south $1.06, or 4.7%, to $21.53, while Corus Entertainment dove 50 cents, or 3.6%, to $13.53.
Also faring badly were material stocks, most notably B2Gold, down 10 cents, or 6.4%, to $1.47, while Canexus Corporation floundered nine cents, or 7%, to $1.20.
Bombardier was the most actively traded stock, dumping 20 cents, or 10.8% to $1.66, on 17.3 million shares.
The U.S. Federal Reserve had been indicating it planned to hike rates at some point this year, but recent worries about global growth and lackluster Chinese economic data have raised the possibility the U.S. central bank could delay any increase to next year.
ON BAYSTREET
The TSX Venture Exchange skidded 3.1 points to 544.10
All but one of the 14 TSX subgroups were lower, weighed most by metals and mining, down 3.7%, global base metals, off 1.9%, and consumer discretionary stocks, faltering 1.6%
The lone holdout was in financials, and only 0.01%.
ON WALLSTREET
U.S. stocks closed lower Monday as investors weighed mostly negative stock performance overseas and eyed the Federal Reserve meeting later in the week.
The Dow Jones industrial average dropped 62.13 points to 16,370.96. Apple led blue-chip advancers with a gain of about 1% amid positive reports on new iPhone demand. IBM was the greatest negative weight on the blue-chip index.
The S&P 500 moved down 8.02 points to 1,953.03. Materials fell more than 1% as the greatest decliner in the S&P 500.
The NASDAQ index slid 16.58 points to 4,805.76.
Barron's cover story said Alibaba stock could plunge 50% from current levels based on its price-to-earnings ratio with other tech companies, market share, and other factors.
The Chinese e-commerce giant responded with a letter on its website outlining what it considered inconsistencies in the article's analysis. Alibaba stock briefly fell more than 4.5% in intraday trade.
The Federal Open Market Committee is scheduled to meet Wednesday and Thursday and could raise short-term interest rates for the first time in more than nine years.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.18% from Friday’s 2.19%. Treasury prices and yields move in opposite directions.
Oil prices dropped 57 cents a barrel to $44.06 U.S.
Gold prices gained $4.80 to $1,108.10 U.S. an ounce.
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