Equity markets in Toronto dropped sharply on Friday after the U.S. Federal Reserve revived concerns about global economic growth as it kept interest rates steady, sparking declines in the prices of oil and copper.
The S&P/TSX composite index slumped 186.86 points, or 1.4%, to open the week’s final session at 13,600.30
The Canadian dollar leaped 0.64 cents at 76.5 cents U.S.
The energy sector slumped as Suncor Energy dropped $1.03, or 2.9%, to $34.10, and Canadian Natural Resources declined $1.10, or 3.9%, to $26.85.
In the mining sector, First Quantum Minerals Ltd fell 52 cents, or 6.9%, to $7.07 and Teck Resources lost 45 cents, or 5.2%, to $8.26.
Moreover, Barclays cut the target price on MEG Energy Corp to $11.00 from $13.00 considering the company’s focus on the balance sheet rather than on growth in the current oil price environment.
MEG shares retreated 51 cents, or 5.4%, to $8.91.
Financials, the index's most heavily weighted sector, slipped as Bank of Nova Scotia gave back $1.08, or 1.8%, to $58.07.
RBC cut the target price on Barrick Gold to $8.00 from $10.00 to reflect the company’s lower copper price forecasts and other model revisions.
Barrick shares moved ahead seven cents to $9.06.
Transition Therapeutics Inc is out with earnings today, but is expecting a Q4 loss of $1.22 per share. Transition shares dipped a penny to 35 cents.
On the economic calendar, Statistics Canada reported that inflation rose 1.3% in the 12 months leading to August, a rise identical to July. The consumer price index posted no change in August on a monthly basis, after rising 0.2% in July.
ON BAYSTREET
The TSX Venture Exchange shed 1.12 points to 550.20
All but two of the 14 TSX subgroups were lower in the first hour, with metals and mining tumbling 3.9%, global base metals surrendering 3.6%, and energy 2.6% less energetic.
The two gainers were gold, up 2%, and consumer staples, stronger by 0.3%
ON WALLSTREET
U.S. stocks plunged more than 1% Friday, pressured by concerns over the implications of the Federal Reserve's decision to leave short-term interest rates unchanged.
The Dow Jones industrial average dropped 208.79 points, or 1.3%, to 16,465.95, falling back into correction territory, or more than 10% off its 52-week high.
ExxonMobil led decliners and Procter & Gamble was the only advancer.
The S&P 500 fell 24.94 points to 1,965.26, with energy leading nine sectors lower and utilities the only advancer.
The NASDAQ index slumped 51.99 points to 4,892
On the data front, leading indicators for August rose 0.1%, below the expected 0.2% gain.
In the face of jittery financial markets and a global slowdown, the Federal Reserve held its key federal funds rate unchanged.
September was supposed to be the month the U.S. central bank finally came off its zero interest rate policy, but instead it opted to hold steady for at least one more month.
During a conference after the announcement, Federal Reserve Chair Janet Yellen stressed the path of the Fed's first rate hike in nearly a decade is more important than its timing.
Prices for 10-year U.S. Treasuries gained, lowering yields to 2.16% from Thursday’s 2.19%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.59 a barrel to $45.31 U.S.
Gold prices vaulted $22.00 to $1,131.40 U.S. an ounce.
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