The Toronto stock market was sharply lower Wednesday as commodity prices retreated amid more signs of a slowing global economy.
The S&P TSX Composite Index approached lunch hour Wednesday down 194.61 points, or 1.7% to 11,600.58
The Canadian dollar slumped 0.82 cents to 95.49 U.S. cents.
The financial sector was a major weight on the TSX, with Royal Bank down 84 cents to $44.09.
Worries about lower demand and the higher U.S. dollar pushed oil prices down significantly.
A stronger greenback usually helps depress oil prices, which are denominated in dollars, as it makes oil more expensive for holders of other currencies.
The energy sector stumbled, as Suncor Energy fell 81 cents to $29.61.
Production from an upgrader at the Syncrude oilsands mine was disrupted Tuesday, and Canadian Oil Sands Ltd., the biggest partner in the sprawling project, said work is underway to get the processing plant running again. The company said the shutdown was the result of an "instrumentation failure" at a coking unit. Canadian Oil Sands shares were off 27 cents to $19.25.
The base metals component fell as Metals also sold off with the December copper contract on the Nymex down seven cents to $3.26 U.S. a pound. Teck Resources lost 90 cents to $33.50.
Bullion prices also retreated as Barrick Gold Corp. faded 74 cents to $50.24.
China’s Minmetals Resources Ltd. has extended the deadline for its $1.3-billion takeover offer to shareholders of Anvil Mining Ltd. The Minmetals offer of $8 per Anvil share in cash will now be open until 8 p.m. ET on Dec. 9, about two weeks after the previous deadline of Nov. 24. Anvil mining dipped three cents to $7.30.
ON BAYSTREET
The TSX Venture Exchange jettisoned 30.92 points to 1,524, while the Nasdaq Canada index faded 10.33 points to 376.44.
All 14 Toronto subgroups were south by midday. Metals and mining plunged 3%, while energy lost 2.6% and global base metals slipped 2.4%.
ON WALLSTREET
In New York, stocks hovered deep in the red early Wednesday, as euro-zone fears rumbled on and a preliminary report showed that Chinese manufacturing slowed sharply.
The Dow Jones Industrials went down 196.51 points, or 1.7%, to 11,297.20.
The S&P 500 dipped 21.54 points, to 1,166.50, while the Nasdaq Composite staggered 50.26 points to 2,471.02
A disappointing auction of German bonds, mixed reports on U.S. unemployment and income and weak Chinese manufacturing data kept investors on edge Wednesday.
Stocks have taken a downward turn in recent sessions, as rising bond yields in Italy and Spain continue to shake investor confidence.
The European Commission published a green paper on stability bonds Wednesday to help allay those worries, outlining proposals to fix the euro-zone's debt crisis. However, skepticism remains about how effective these plans will be.
Investors also fear that a slump in Chinese manufacturing could mean that the euro-zone's problems are spreading beyond Europe. And a weak auction of 10-year German debt on Wednesday only added fuel to the fire.
Stocks ended in the red Tuesday amid worries about U.S. economic growth, though losses were trimmed after the International Monetary Fund unveiled a beefed-up lending program to help otherwise healthy countries with short-term financing problems.
Bank of America shares slid nearly 4%, hovering just above a two-year low, after a report in The Wall Street Journal on Tuesday stated the bank was having difficulty meeting U.S. financial regulatory requirements.
Late Tuesday, the Federal Reserve also ordered the top 31 U.S. banks -- with assets of $50 billion or more -- to participate in stress tests that will simulate another financial crisis.
Shares of Groupon tumbled 14%, to $17.20 U.S. a share -- well below its initial public offering price of $20. The Internet deal site's stock has been pummeled this week -- along with other newly public startups like LinkedIn -- on renewed dot-com bubble concerns and worries of overvaluation.
John Deere reported full-year earnings that hit a record $2.8 billion U.S., and posted fourth-quarter net income that blew past expectations. Shares of the equipment maker climbed 6%.
Economically speaking, the U.S. government released several economic reports Wednesday including jobless claims, personal spending and income, and durable goods.
The number of people filing for initial unemployment benefits rose 2,000 in the latest week to 393,000. Analysts surveyed by Briefing.com expected 391,000 jobless claims for the week ending November 19.
Personal income climbed 0.4% in October, while personal spending grew 0.1%. Analysts had expected both measures to rise 0.3%.
Meanwhile, orders of durable goods slipped 0.7% in October -- slightly less than the 0.9% drop economists had been expecting.
The price on the benchmark 10-year U.S. Treasury edged higher, pushing the yield back to Tuesday’s 1.94%. Treasury prices and yields move in opposite directions.
Oil for January delivery slipped $1.22 to $96.79 U.S. a barrel.
Gold futures for December delivery fell $10.20 to $1,692.20 U.S. an ounce.
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