A session with all the makings of a disaster moderated somewhat on Monday, the first trading day of 2016, after markets reacted to a pronounced selloff in China.
The S&P/TSX composite index finished off its session lows, but still negative, 82.8 points to wrap up Monday at 12,927.15.
The Canadian dollar fell 0.44 cents to 71.75 cents U.S.
Raw-materials producers added almost to their strength, led by gains among gold mining companies. Barrick Gold added 5.6% to $10.81, and Goldcorp increased 3.4% to $16.54.
Among information technology stocks, though, BlackBerry eased 0.7% to $12.75, while Pacific Insight Electronics gained 0.8% to $6.75.
Consumer staples faded, primarily grocer Metro, down 0.5%, to $38.56, while rival Loblaw slid 0.8% to $64.84.
Consumer discretionary stocks dipped Indigo Books & Music gained 0.7% to $14.65.
Economically speaking, RBC reported this morning that its Canadian Manufacturing Purchasing Managers’ Index registered a seasonally-adjusted 47.5 in December, down from 48.6 in November and below the neutral 50.0 threshold for the fifth consecutive month, the sharpest deterioration since October 2010
ON BAYSTREET
The TSX Venture Exchange forfeited 0.01 points to 525.65
All but three of the 13 TSX subgroups ended the day lower, with information technology heading earthward 1.8%, consumer discretionary stocks down 1.5%, and consumer staples off 1.4%.
The three gainers proved to be gold, shining 3.7% brighter, materials, stronger 2%, and telecoms inching up 0.1%.
ON WALLSTREET
U.S. stocks closed lower Monday, the first day of trade of the year, weighed by renewed concerns of global economic slowdown and increased tensions in the Middle East. An overnight drop in Chinese stocks that triggered a new circuit breaker rule also pressured investor sentiment.
The Dow Jones industrial average surrendered 276.09 points, or 1.6%, to close a wild Monday at 17,148.94, with DuPont leading all member stocks lower.
The Dow also briefly fell below the psychologically key 17,000 level in intraday trade for the first time since October, losing at point more than 400 points.
The S&P 500 lost 32.75 points, or 1.6%, to 2,011.19. Financials, health-care, and technology fell more than 2% in afternoon trade to lead all S&P 500 sectors lower.
The NASDAQ index dropped 104.32 points, or 2.1%, to 4,903.09. Apple briefly attempted to trade higher after earlier falling more than 3%.
Tesla and Chinese e-commerce site JD.com fell more than 7% in afternoon trade as the greatest decliners in the NASDAQ.
In U.S. economic news, the December U.S. Markit manufacturing PMI was 51.2.
The December ISM Manufacturing Index showed 48.2.
Construction spending fell 0.4% in November.
Overseas, Chinese stocks plunged 7% after Caixin manufacturing Purchasing Managers Index showed continued contraction in that area of the economy.
Prices for the 10-year Treasury rose, lowering yields to 2.24% from Thursday’s 2.27%. Treasury prices and yields move in opposite directions.
Oil prices soared 29 cents a barrel to $36.75 U.S.
Gold prices spiked $13.63 to $1,074.73 U.S. an ounce.
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