Equities in Toronto dropped sharply by Friday’s closing bell 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 140.26 points, or 1%, to close the day and the week at 13,646.90
The Canadian dollar moved lower 0.2 cents at 75.67 cents U.S.
Base metals were punished Friday, as Capstone Mining plummeted nine cents, or 14.8%, to 52 cents, while First Quantum Minerals got bruised 60 cents, or 7.9%, to $6.99.
Energy stocks were also blasted, as Lightstream Resources plunged seven cents, or 14.3%, to 42 cents, while Trican Well Service fell 13 cents, or 8%, to $1.49.
Among utilities, Algonquin Power & Utilities dropped 40 cents, or 4.1%, to $9.41, while Capital Power slipped 58 cents, or 2.9%, to $19.73.
Gold provided one of the few bright spots on a gloomy Friday, as Kinross Gold surged 18 cents, or 8%, to $2.42, while Iamgold gained 14 cents, or 6.2%, to $2.39.
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 1.41 points to 549.91
Nine of the 14 TSX subgroups were negative on the day, as metals and mining shed 4.9%, global base metals dipped 3.5%, and energy lost 2.4%
The five gainers were led by gold, up 1%, consumer staples, ahead 0.8%, and health-care, moving up 0.6%.
ON WALLSTREET
U.S. stocks closed sharply lower Friday as investors weighed concerns over the implications of the Federal Reserve's decision to keep short-term interest rates unchanged.
The Dow Jones industrial average jettisoned 289.95 points, or 1.7%, to 16,384.79, with Merck leading all blue chips lower.
The S&P 500 fell 32.12 points, or 1.6%, to 1,958.08, with energy leading all sectors lower.
The NASDAQ index slouched 66.72 points, or 1.4%, to 4,827.23
The Dow and S&P 500 were both mildly negative for the week. The NASDAQ composite eked out a 0.1% gain for the week.
Analysts also noted Friday trading would likely see more volatility due to quadruple witching, the expiration of three related classes of options and futures contracts, as well as individual stock futures options.
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 2.13% from Thursday’s 2.19%. Treasury prices and yields move in opposite directions.
Oil prices fell $2.07 a barrel to $44.83 U.S.
Gold prices moved up $21.10 to $1,138.10 U.S. an ounce.
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