Equity markets in Canada’s biggest centre plunged to their lowest since mid-2013 on Thursday as investors worried about a Chinese equity capitulation and oil prices pushed ever lower.
The S&P/TSX composite index hurtled lower 189.36 points, or 1.5%, to move into noon hour at 12,537.60
The Canadian dollar inched ahead 0.03 at 71.07 cents U.S.
Big loss fell on stocks such as Canadian National Railway, which fell 2.6% to $71.52, Suncor Energy, which declined 2.8% to $33.13 and Canadian Natural Resources, which lost 3.7% to $28.26.
Royal Bank of Canada declined 1.4% to $70.58 and Manulife Financial declined 3.1% to $19.12.
Copper prices declined 2.8% to $4,493 U.S. a tonne.
On the economic front, Western University’s IVEY Purchasing Managers Index rolled in this morning, showing a reading of 49.9 for December, compared to 63.6 for November 2015, and 55.4 for December 2014
The index asks purchasing managers whether they bought more for their firms during the month, less, or about the same. Any reading over 50 indicates an expansion; under 50, contraction.
ON BAYSTREET
The TSX Venture Exchange shed 5.4 points to 514.97
All but two of the 13 TSX subgroups were down, weighed most by metals and mining, slumping 5.4%, while energy and health-care each slouched 2.7%.
The two gainers were gold, hiking 2.9%, and materials, better by 0.8%.
ON WALLSTREET
U.S. stocks traded lower Thursday as China news overnight and a continued decline in oil prices renewed concerns about global economic growth.
The Dow Jones industrial average swooned 214.35 points, or 1.3 %, to 16,692.16, with DuPont leading decliners and Wal-Mart and Disney the only gainers.
The Dow regained more than half its losses in mid-morning trade after the China Securities Regulatory Commission suspended its recently implemented circuit breaker system Thursday morning.
Overnight, a 7% drop in mainland Chinese indexes triggered a circuit breaker, with Chinese markets open for less than half an hour in total. The halt was the second in a week.
The S&P 500 slumped 24.6 points, or 1.2%, to 1,965.66, with financials and materials leading all 10 sectors lower.
The NASDAQ index fell 79.51 points, or 1.6%, to 4,756.26.
As of midday trade, the major U.S. averages were down more than 3.5% each for the week so far, their first trading week of 2016.
In a light day of U.S. economic news, weekly jobless claims came in at 277,000. The December employment report is due Friday morning.
Prices for the 10-year Treasury fell back, raising yields to 2.18% from Wednesday’s 2.17%. Treasury prices and yields move in opposite directions.
Oil prices sank 30 cents a barrel to $33.67 U.S.
Gold prices grew $12.73 to $1,106.40 U.S. an ounce.
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