Equities in Canada’s largest market fell on Wednesday, driven by a drop in energy stocks as oil prices slipped.
The S&P/TSX Composite Index faltered 261.8 points, or 1.7%, to approach Wednesday’s noon at 15,592.25
The Canadian dollar slumped 0.26 cents to 77 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.
The largest percentage gainer on the TSX was Parkland Fuel, which jumped $2.67, or 6.6%, to $44.95, after the marketer of petroleum products said it would buy a 75% stake in privately held SOL Investments and its units for $1.57 billion.
Celestica rose 38 cents, or 2.9%, to $13.30, and was the second biggest gainer on the main index after the electronics manufacturer entered a deal to buy Impakt Holdings for $329 million.
Canada Goose fell $5.76, or 8.4%, the most on the TSX, to $63.04, followed by Westjet Airlines, down $1.03, or 5.5%, to $17.60.
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 slouched 10.4 points, or 1.5%, to 692.56
All 12 subgroups were down midday, as industrials sank 3.8%, information technology lost 3.4%, and energy dropped 3.1%.
ON WALLSTREET
Stocks sank on Wednesday, led by a steep decline in tech shares as this month's selloff continued.
The Dow Jones Industrial Average collapsed 400.23 points, or 1.5%, to reach lunch hour at 26,030.34, as Intel and Microsoft fell more than 1.5% each.
The S&P 500 let go of 44.65 points, or 1.6%, to 2,835.69, with the tech and industrials sectors underperforming. The broad index was also headed for a five-day losing streak — which would be its longest since late 2016 — and fell below its 50-day moving average, a widely followed technical level.
The NASDAQ hurtled earthward 175.88 points, or 2.3%, to 7,562.13
The major indexes have fallen sharply this month. For October, the S&P 500 has decreased 2.5%, and the Dow is down 1.7%. The NASDAQ, meanwhile, has lost more than 6%.
Rising rate fears and a pivot out of technology stocks have made it a rough last few days. The S&P 500 is down for five straight days. The Dow has dropped four of the last five sessions, losing about 700 points over that span.
Shares of Amazon declined more than 3%, while Netflix slid 5.8%. Facebook and Apple also fell more than 1.5% each.
Bank shares traded higher as yields rose. Citigroup improved 0.5% and Bank of America gained 0.1%. Wells Fargo also rose 0.8%.
Rates rose on Wednesday after the U.S. government released data showing a rebound in producer prices last month. The producer price index rose 0.2% in September and is up 2.8% on a year-over-year basis. The index is a widely followed metric of inflation.
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 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 $1.52 at $73.44 U.S. a barrel.
Gold prices inched higher 10 cents to $1,191.60 U.S. an ounce.
