The resources-laden Canadian stock market extended losses on Tuesday as worries about China’s economic growth pressured investors’ sentiment.
The S&P/TSX Composite Index fell 49 points to 12,430.70.
The Canadian dollar faltered 0.46 cents at 100.84 cents U.S.
China’s National Development and Reform Commission said Monday it will raise gasoline and diesel prices for the second time this year to buffer the impact of rising crude-oil prices on refiners.
The news of the price increase was followed by remarks from Australia’s BHP Billiton Ltd. warning that China’s appetite for iron ore is "flattening."
Viterra Inc. fell 0.4% to $15.91, after it announced earlier Tuesday that it will be sold to Glencore International PLC $16.25 a share. The price reflects a 48% premium over Viterra’s closing price of $10.98 on March 8 and values the grain trader at $6.1 billion.
Teck Resources Ltd. slumped 2.5% to $35.69, Research In Motion Ltd. slid 1.6% to $14.01, and Canadian Natural Resources Ltd. lost 1.8% to $34.85.
In the energy arena, Suncor dipped 1.4% to $32.99, while Imperial Oil fell 1.7% to $45.71. Among gold plays, Barrick Gold improved 0.6% to $43.37, while Kinross Gold jumped 3.4% to $10.11.
ON BAYSTREET
The TSX Venture Exchange skidded 28.08 points to 1,570.70, while the Nasdaq Canada index tottered 3.86 to 417.28
All but four of the 14 Toronto subgroups remained in the red on the day. Global base metals suffered 1.8%, energy stocks settled 1.4%, and industrial issues slid 1.3%.
The four gainers were led by gold, which regained 0.8%, materials, up 0.6%, and telecoms, inching up 0.05%.
ON WALLSTREET
In New York, stocks fell Tuesday as concerns about slowing growth in China overshadowed an upbeat report on the U.S. housing market.
The Dow Jones Industrials finished negative by 68.94 points to 13,170.20.
The S&P 500 gave back 4.23 points to 1,405.52, while the Nasdaq flopped 4.17 points to 3,074.15.
Shares of economically sensitive U.S. companies in the industrial and materials sector led the retreat, with Caterpillar, Alcoa and Chevron down sharply. But shares of Bank of America, Cisco and Home Depot bucked the trend.
The selling came despite U.S. government data that showed a big increase in requests for building permits, although initial constructing of new homes declined in February.
Jefferies Group posted quarterly earnings of 33 cents U.S. per share on strong gains in its investment banking business, topping analyst estimates. The firm also beat on revenue.
Shares of Tiffany & Co rose after the luxury jeweler reported sales of $1.2 billion U.S. -- in line with forecasts -- and issued an upbeat outlook.
Shares of Adobe Systems fell after the software maker issued earnings and guidance in line with expectations late Monday.
Michael Kors' stock got a boost after the fashion company hiked its outlook.
Amazon shares rose after the online retailer announced plans to buy Kiva Systems, a manufacturer of bright orange robots that scuttle around warehouses filling orders, for $775 million U.S.
Shares of Chinese solar companies surged, after the U.S. Commerce Department imposed smaller-than-expected tariffs on solar panels imported from China. Yingli Green Energy Holding, Suntech Power Holding and Trina Solar were up between 10% and 15%.
On the flip side, shares of U.S. solar panel companies First Solar and SunPower slumped.
Oracle is slated to report earnings after the bell Tuesday. The tech firm is expected to earn 56 cents a share on $9 billion U.S. of revenue.
Bank of America shares edged up after the bank denied speculation Monday that it's planning to raise money by issuing stock in a secondary offering.
On the economic beat, future home construction showed signs of strength in February, with permits climbing 5.1% to annual rate of 717,000, topping analyst predictions of 695,000.
Housing starts dipped 1.1% to 698,000, below estimates.
On Capitol Hill, Treasury Secretary Tim Geithner told lawmakers that steps taken by European policy makers have helped alleviate tensions in the global financial markets, but said more needs to be done to revive the European economy.
Geithner reiterated that the United States remains opposed to providing additional resources for the International Monetary Fund.
Meanwhile, U.S. House Republicans unveiled a $3.53-trillion budget for 2013 that is expected to face resistance in the Democratic-controlled Senate.
The price on the benchmark 10-year U.S. Treasury gained back lost ground, pushing the yield lower to 2.37% from 2.38% Monday. Treasury prices and yields move in opposite directions.
Oil for February delivery slid $2.41 to $105.68 U.S. a barrel.
Gold futures for April delivery fell $20.30 to end at $1,647 U.S. an ounce.
