Stocks throughout the world took a header Friday, as gold and materials issues led the way downward amid uncertainty over whether and how soon borrowing costs stateside would move upward again.
The S&P/TSX Composite surrendered 263.38 points, or 1.8%, to close the day and a short week at 14,539.88
The Canadian dollar dropped 0.57 cents at 76.73 cents U.S.
There were no TSX sub-groups moving in a positive direction, and gold stocks in particular took their lumps, primarily Yamana Gold, down 33 cents in price, or 5.4%, to $5.74, while Barrick Gold got bruised 96 cents, or 4%, to $22.88.
Health-care stocks all took a massive hit, as Valeant Pharmaceuticals swooned $2.16, or 5.6%, to $36.64, while rival Concordia International shed 45 cents, or 4.5%, to $9.51.
Among energy issues, Crescent Point Energy was punished $2.11, or 10.4%, to close out at $18.15.
Adding to the volatility, North Korea conducted its fifth and biggest nuclear test on Friday and said it had mastered the ability to mount a warhead on a ballistic missile.
On the domestic economic front, Statistics Canada reported that the economy created 26,000 jobs during August. The unemployment rate rose 0.1 percentage points to 7.0%, as more people participated in the labour market.
Moreover, Canada Mortgage and Housing Corporation revealed that housing starts declined to 195,640 units in August compared to 201,379 in July.
ON BAYSTREET
The TSX Venture Exchange surrendered 13.43 points, or 1.6%, to 812.17
All 12 TSX subgroups were negative on the day, as gold collapsed 4.3%, materials faded 3.6%, and health-care slid 3.2%
ON WALLSTREET
U.S. equities closed sharply lower on Friday as concerns the Federal Reserve might raise interest rates this month loomed following comments made by key Fed officials.
The Dow Jones Industrials hurtled lower 394.46 points, or 2.1%, with 3M and Boeing weighing the heaviest. The index also posted its biggest single day fall since June 24 and its worst week since January.
The S&P 500 skidded 53.49 points, or 2.5%, to 2,127.81, with telecommunications and utilities shedding more than 3%. The index also posted its first 1% move since July 8, as well as its biggest one-day fall since June 24.
The NASDAQ Composite tumbled 133.57 points, or 2.5%, to 5,125.91, Apple slid 2.3%
Boston Fed President Eric Rosengren said in a speech low interest rates are increasing the chance of overheating the U.S. economy. He also said gradually tightening monetary policy is appropriate to maintaining full employment.
Wholesale trade data for July showed inventories remained unchanged, while sales fell 0.4%.
Prices for the 10-year Treasury fell sharply, boosting yields to 1.68% from Thursday’s 1.61%. Treasury prices and yields move in opposite directions.
Oil prices moved lower $1.73 at $45.89 U.S. a barrel
Gold prices shed $9.20 at $1,332.40 U.S. an ounce.
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