Stocks in Toronto fell sharply on Wednesday as deterioration in risk appetite and weakening in crude oil prices weighed on the resource linked market.
The S&P/TSX composite index let go of 105.39 points to open Wednesday at 12,814.75
The Canadian dollar fell 0.35 cents to 71.11 cents U.S.
Sources say Valeant Pharmaceuticals International will appoint an interim chief executive to replace Michael Pearson, who is hospitalized. Valeant shares were stronger $1.33 to $142.49.
Israeli real estate developer Gazit-Globe said it sold a 2.9% stake in Canadian unit First Capital Realty for $117 million. Gazit-Globe shares in Toronto were unchanged at $12.93, while First Capital acquired a dime to $18.20.
Canaccord Genuity cut the target price on Dream Unlimited Corp. to $10.00 from $12.00. Dream shares dropped five cents to $7.63.
National Bank raised the target price on Lumenpulse Inc. to $20.00 from $18.00 with an outperform rating. Lumenpulse shares gained 15 cents to $18.16.
On the economic front, Statistics Canada reported this morning that this country’s imports decreased 0.7% in November and exports increased 0.4%. Import volumes declined 1.6% while prices increased 0.9%. For exports, volumes were up 0.7% while prices declined 0.4%.
As a result, the agency says, Canada's merchandise trade deficit with the world narrowed from $2.5 billion in October to $2 billion in November.
ON BAYSTREET
The TSX Venture Exchange doffed 2.12 points to 522.14
All but three of the 13 TSX subgroups were negative to start off, with metals and mining sliding 3.1%, energy down 2.5%, and consumer discretionary stocks off 1.2%.
The three gainers were gold, up 4%, materials, better by 1.3%, and consumer staples, up 0.3%.
ON WALLSTREET
U.S. stocks traded sharply lower Wednesday, weighed by continued concerns about global economic growth, low oil prices and increased geopolitical tensions.
The Dow Jones industrial average inched forward 9.72 points to 17,158.66, with Chevron leading all member stocks lower.
The S&P 500 moved up 4.42 points to 2,017.08. Energy fell more than 2% to lead all S&P 500 sectors lower.
The NASDAQ index fell 11.66 points to 4,891.43. Apple briefly traded more than 1.5% lower, around $101 U.S. a share.
Overnight, the Chinese yuan plunged to a five-year low in offshore trading, sharply widening the gap with the mainland-traded yuan.
The headline Caixin China General Services PMI for December was 50.2, down one point from November and the lowest in 17 months, according to Markit. The report comes after another sub-50 print on manufacturing PMI for both China and the United States in the last few days.
Adding to those concerns Wednesday was North Korea's claim to have successfully tested a hydrogen bomb.
Economically speaking, the December ADP report showed creation of 257,000 payrolls.
The U.S. November trade deficit came in at $42.4 billion. Imports of goods fell to their lowest in nearly five years, outpacing a drop in exports
In other economic news, the U.S. Markit Services PMI for December was 54.3, below November's final print of 56.1.
ISM non-manufacturing came in at 55.3, down from November's 55.9.
The Commerce Department said on Wednesday new orders for manufactured goods slipped 0.2% after a downwardly revised 1.3% gain in October
Prices for the 10-year Treasury were higher, lowering yields to 2.2% from Tuesday’s 2.25%. Treasury prices and yields move in opposite directions.
Oil prices sank $1.09 a barrel to $34.88 U.S.
Gold prices grew $12.30 to $1,089.98 U.S. an ounce.
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