The Toronto stock market tumbled more than 200 points Thursday, as prices for oil and metals slid while disappointing trade data from China raised worries about the strength of the world’s second-largest economy.
The S&P/TSX composite index were down 246.13 points, or 1.8%, by the close to 13,638.58
Soft commodity prices helped push the Canadian dollar down 0.75 of a cent to 102.5 cents U.S.
China reported a surprise trade deficit in February as surging prices for oil and other commodities pushed up its import bill.
February export growth plunged to 2.4% as businesses were idled for the weeklong Lunar New Year holiday while imports of higher-priced oil and other goods rose 19.4%, adding up to a deficit of $7.3 billion, against expectations of a surplus of $4.9 billion U.S. Economists had expected export growth of 27.1% and imports to rise 32.6%.
Markets are also looking forward to more key Chinese data on Friday, including inflation, industrial production and the latest purchasing managers’ survey.
China has been one of the main pillars behind the global economy over the past few years. Many analysts argue that buoyant Chinese economic growth effectively prevented the economic recession from becoming a depression.
Meanwhile, fighting between supporters and opponents of Libyan leader Moammar Gadhafi intensified on the main front line between the Mediterranean oil port of Ras Lanouf and the city of Bin Jawwad.
On Thursday, rebel forces beat a retreat from the strategic oil port of Ras Lanouf on Thursday as Gadhafi’s army pounded the town with artillery. Oil prices are still up sharply from just under $90 U.S. a barrel on Feb. 18.
Suncor Energy was down $1.54 to $41.64 while Canadian Natural Resources dropped $1.43 to $44.91.
The base metals sector fell as metal prices also declined with the May copper contract in New York down a cent to $4.20 U.S. a pound. Teck Resources dropped $1.23 to $49.64 while Ivanhoe Mines stepped back $1.20 to $24.54.
Copper prices have slipped about 7% from mid-February amid worries that higher energy prices could hobble demand.
Higher metals prices helped integrated mining company HudBay Minerals Inc. more than triple net earnings in the fourth quarter to $24.5 million or 16 cents per share, compared with $7.2 million or five cents in the same 2009 quarter. Revenue was $183.3 million compared with $166.7 million in the 2009 quarter and its shares fell 55 cents to $16.12.
The gold sector tumbled as Goldcorp Inc. lost $1.11 to $46.01.
The financials sector was also lower, with Royal Bank down $1.39 to $59.40 and Sun Life Financial declined 54 cents to $30.55.
In other corporate news, shares in tourism operator Transat A.T. Inc. tumbled 23.66% to $12.65 as the firm narrowed its net loss in the first quarter to $13.5 million or 36 cents per share, but missed analyst expectations. Revenues rose 2% for the quarter, but the company said it faced tougher competition and reduced prices in a "difficult" period for the travel industry.
Bauer Performance Sports shares got off to a slow start Thursday as the iconic hockey equipment maker began life as a publicly traded company. The newly listed shares were off five cents from their issue price of $7.50. Bauer gear is used by National Hockey League stars including Steve Stamkos, Jonathan Toews and Patrick Kane.
On the economic ledger, Statistics Canada said this morning that Canada's trade surplus narrowed sharply in January, falling to $116 million from $1.7 billion in December.
Exports rose by 0.8% to $37.5 billion but imports rose 5.3% to $37.4 billion in January, led by a 16.6% increase in volumes of automotive products. A significant increase was also recorded in imports of machinery and equipment.
ON BAYSTREET
The TSX Venture Exchange demurred 86.84 points to 2,239.62, while the Nasdaq Canada index swooned 26.99 points to 781.80
In Toronto, all 14 subgroups felt around for the bruises, most notably global base metals, down 2.8%, materials stocks, sliding 2.6%, and energy, suffering 2.5%.
ON WALLSTREET
In New York, stocks saw a deep sea of red Thursday, as economic fears at home and political concerns in Saudi Arabia weighed heavily on investor sentiment.
The Dow Jones industrial average fell 228.48, or 1.9%, on the day to 11,984.80, trading below 12,000 for the first time since Feb. 24.
All but two of the Dow's 30 components were down in Thursday's session. Energy and materials stocks were among the hardest hit, with Exxon Mobil, Caterpillar and Chevron all retreating more than 3%.
The S&P 500 slid 24.91 points to 1,295.11. The tech-rich Nasdaq index weakened 50.70 points to 2,701.02
Thursday's selling accelerated in the afternoon following news reports saying police in Saudi Arabia had fired shots or grenades at anti-government protestors. Protestors had reportedly scheduled a "Day of Rage" similar to the one that occurred in Egypt earlier this year.
Oil, which had been down as much as 3% earlier, erased the bulk of its losses following the reports.
Investors are worried that the situation in oil-rich Saudi Arabia could deteriorate further, adding to the massive ongoing violence in Libya.
Starbucks and Green Mountain Coffee announced a deal that will put Starbucks coffee into Green Mountain's K-Cup single-cup brewing packets.
Shares of Green Mountain jumped 37%, while Starbucks shares were up more than 9% on the deal.
Shares of hospital chain HCA rose 4% on the day of its initial public offering. HCA priced its initial public offering at $30 U.S. per share, raising an estimated $3.8 billion U.S. for both the company and existing shareholders. It is considered to be the largest private-equity backed IPO in U.S. history, according to Renaissance Capital.
Radio station operator Cumulus Media shares fell 7%, after it announced it was purchasing Citadel Broadcasting for $2.4 billion U.S.
On the economic front, the U.S. trade balance for January widened to $46.3 billion U.S., a five-month high. It was much wider than the $41.5-billion U.S. gap forecast, according to a consensus estimate from Briefing.com.
Initial unemployment benefit claims surged by 26,000 in the latest week to 397,000, the Labor Department said. Economists expected the number of people filing for first-time benefits to have risen to 382,000. The increase was due partly to a catch-up effect from the Presidents Day holiday the previous week.
The price on the benchmark 10-year U.S. Treasury was up sharply, pushing the yield down to 3.39% from Wednesday’s 3.47%. Treasury prices and yields move in opposite directions.
Oil for February delivery dipped $1.94 to $102.44 U.S. a barrel.
Gold futures for April delivery fell $17.60 to $1,412 U.S. an ounce.
Related Stories
