Big losses at outset

Enbridge, Frontera in focus

Equities in Canada’s largest centre opened lower on Wednesday in broad-based declines weighed down by ongoing concerns of a slowing global economy.

The S&P/TSX Composite Index stumbled 122.48 points to begin a rocky Wednesday at 15,731.57

The Canadian dollar faltered 0.15 cents to 77.11 cents U.S.

The International Monetary Fund on Tuesday cut its world Gross Domestic Product forecasts for the first time in two years and slashed expectations for emerging markets for 2019.

Parkland Fuel Corp. said it would buy a 75% stake in privately held SOL Investments Ltd and its units for $1.57 billion. Desjardins raised the target price on Parkland shares to $47.00 from $46.00. Parkland shares galloped $2.67, or 6.3%, to $44.86.

Enbridge said a natural gas transmission pipeline ruptured in a rural area north of Prince George, B.C. on Tuesday, prompting precautionary evacuations. Enbridge shares dipped 32 cents to $43.31.

Eight Capital cut the target price on Frontera Energy Corp. to $24.50 from $26.50. Frontera shares forged ahead 10 cents to $18.31.

On the economic slate, Statistics Canada reported Canadian municipalities issued $8.1 billion worth of building permits in August, up 0.4% from July. Strength in the non-residential sector drove the increase, while the residential sector declined for the third consecutive month.

ON BAYSTREET

The TSX Venture Exchange lost 2.23 points to 700.73

All 12 subgroups were down in the first hour, as energy and consumer discretionary stocks each wilted 1.7% and health-care ailed 1.5%.

ON WALLSTREET

Stocks fell on Wednesday as a sharp rise in interest rates has pushed investors to the sidelines.

The Dow Jones Industrial Average collapsed 259.16 points, or 1%, to begin the day at 26,171.41, as Intel and Nike lagged.

The S&P 500 let go of 32.86 points, or 1.1%, to 2,848.48, with the tech and industrials sectors underperforming. The broad index was also headed for a five-day losing streak and fell below its 50-day moving average, a widely followed technical level.

The NASDAQ hurtled earthward 140.97 points, or 1.8%, to 7,597.05

Bank shares traded higher as yields rose. Citigroup acquired 0.3% and Bank of America gained 0.3%. Wells Fargo also rose about 0.5%.

The recent rise in rates comes ahead of the start of the latest earnings season. Banks like Citigroup and Wells Fargo are scheduled to report later this week. Overall, analysts polled by FactSet expect third-quarter earnings to have risen by 19% on a year-over-year basis.

Prices for the benchmark for the 10-year U.S. Treasury gained a bit of ground, lowering yields to 3.22% from Tuesday’s 3.20%. Treasury prices and yields move in opposite directions.

Oil prices surrendered 58 cents at $74.38 U.S. a barrel.

Gold prices lost a dollar to $1,190.50 U.S. an ounce.