The Toronto stock market was sharply lower for a second day Thursday as economic concerns pressured commodity stocks while financials were negative after U.S. President Barack Obama called for tougher regulations on banks.
The S&P/TSX Composite Index tumbled 210.22 points, or 1.8%, to 11,469.10
The financial sector was down as TD Bank lost $1.59 to $62.27 while Scotiabank fell $1.25 to $44.70.
Earlier, data from China raised fresh concerns about how much that country can help developed countries pull out of a severe economic slump.
China’s economic growth came in at 10.7% in the fourth quarter of 2009 and 8.7% for the entire year. The rapid growth reinforced concerns that Beijing will move to cut lending and tighten monetary policy to put a lid on inflation, which could dampen the global economic rebound.
The base metals sector was down as March copper eased six cents at $3.29 U.S. a pound. First Quantum Minerals lost $5.21 to $90.49 while Teck Resources fell $1.73 to $39.74
Inmet Mining Corp. said Wednesday that copper production in 2009 was slightly below estimates, while zinc and gold production were both slightly higher than last estimated. The company said copper production fell short of expectations because lower than expected results from its Las Cruces project. Its shares dropped $10.57 to $58.05.
Among gold stocks, Barrick Gold Corp. faded $1.39 to $38.31.
Iamgold Corp. shares fell $1.28 to $15.09 after saying it expects to record a non-cash impairment charge of between $85 million and $100 million in the fourth quarter -- primarily due to political uncertainty affecting its Camp Caiman project in French Guyana.
The energy sector lost ground, as Suncor Energy dropped 76 cents to $35.85.
Husky Energy Inc. said Wednesday it has managed to shave more than $1 billion off the price tag of its Sunrise oilsands project, part of a joint-venture with British energy giant BP PLC. The Calgary-based company said it now expects Phase 1 of the project to cost $2.5 billion, down from earlier estimates of $3.8 billion to $4 billion. Husky shares lost 62 cents to $28.08.
In Canadian earnings news, shares in Viterra Inc. fell 52 cents to $10.06 as the major grain handler and fertilizer supplier reported a loss of $900,000 in the fourth quarter. But revenues tumbled 17.6% on a significant decline in commodity prices.
Canadian life sciences company MDS Inc. issued preliminary results Thursday, including a $19-million U.S. loss from its continuing operations and a $58-million loss overall in the fourth quarter. It reports full earnings on Jan. 29 and its shares rose 35 cents to $8.35.
Elsewhere on the corporate front, the Supreme Court of Canada has ruled that the federal government did not conduct an adequate environmental assessment of the Red Chris Mining Project in British Columbia. The high court granted an appeal by MiningWatch Canada that objected to an assessment of the proposed gold and copper mine by Imperial Metals Corp.
But the ruling will not stop the project since the environmental and social advocacy group did not have a direct financial interest in the case. Imperial shares ran up $1.07 to $16.50.
In economic news, Statistics Canada said country's wholesale sales rose 2.5% to $42.4 billion on widespread gains, with six of the seven sectors reporting increased sales.
The Canadian dollar skidded 0.52 cents to 95.06 cents U.S.
ON BAYSTREET
All 14 TSX subgroups went south, mostly due to metals and mining stocks, which slid 5.8%, global base metals, falling 5.4% and gold, dropping 3.9%.
The TSX Venture Exchange gave back 31.78 points to 1,558.91, while the Nasdaq Canada index fell 10.04 points to 702.21.
ON WALLSTREET
In New York, Stocks tumbled Thursday after the Obama administration announced a proposal to increase regulation of the nation's biggest financial firms, including limiting the size and scope of their trading operations.
The Dow Jones Industrials collapsed 213.27 points, or 2%, to close at 10,424.27. The S&P 500 staggered 21.56 points to 1.116.48, and the Nasdaq swooned 25.55 points to 2,265.70.
Stocks had fallen through the morning as lingering worries about China's lending practices hit commodities and the broader market. Reports showing a rise in jobless claims and a drop in manufacturing activity added to the pressure, overshadowing Goldman Sachs' better-than-expected profit report.
But declines accelerated in late morning as investors geared up for the White House's announcement, made in the early afternoon.
Obama called for greater government regulation of the nation's biggest financial institutions, including limiting commercial banks ability to make high-risk trades and stopping them from owning or investing in hedge funds.
This would separate commercial and investment banks, a throwback to a Depression-era law that was basically thrown out a decade ago.
Big banks such as JPMorgan Chase, Goldman Sachs and Bank of America would be impacted in particular.
Declines were broad based, with all 30 Dow stocks sliding, led by IBM, Exxon Mobil, Chevron, Caterpillar, Coca-Cola and the bank stocks.
Stocks were also vulnerable after the three major indexes ended at more than 15-month highs on Monday.
Goldman Sachs said it earned $8.20 U.S. a share in the fourth quarter, trouncing forecasts for a profit of $5.20 U.S. per share, thanks to strong gains in its investment unit. Goldman also reported full-year 2009 revenue that doubled from a year ago.
The company also attempted to address criticism of its pay packages one year after accepting government money at the height of the financial crisis. Goldman paid its employees $16.2 billion U.S. in salaries and bonuses last year, up almost 50% from 2008, but still less than what had been expected.
Goldman shares fell 4%. Other big bank shares fell, but some of the regional banks were up, keeping the overall sector near unchanged. Fifth Third Bancorp, Keycorp and Regions Financial all gained.
Starbucks reported higher quarterly sales and earnings that topped estimates in a report released late Wednesday. The coffee chain's results were driven by growth at stores open a year or more, a retail metric known as same-store sales. Shares gained 2%.
In its weekly report on jobless claims, the government reported that claims jumped to 482,000 in the week ended Jan. 16. That's higher than the prior week's revised total of 446,000.
Initial jobless claims were expected to have totaled 440,000, according to a consensus of economists from Briefing.com.
The Philadelphia Fed, a regional reading on manufacturing, fell to 15.2 in January from 22.5 in December versus forecasts for a drop to 18.
Treasury prices jumped, lowering the yield on the 10-year note at 3.61%, down from 3.65% late Wednesday. Treasury prices and yields move in opposite directions.
The price of a barrel of oil dropped $1.74 to $76 U.S.
Gold prices tumbled $10 to $1,103 U.S.
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