Commodity prices dragged Toronto stocks lower early Wednesday, after the U.S. Federal Reserve toned down expectations for further stimulus
The S&P/TSX Composite Index fell 128.34 points, or 1%, to begin the session at 12,194.87
The Canadian dollar dropped 0.49 to 100.43 cents U.S.
Among Canadian stocks to watch is Air Canada. Quebec's attorney general said on Tuesday he had notified the airline of its legal obligation to keep a maintenance centre operating in the province and would take legal action if he did not receive a satisfactory response from the company.
Asset manager IGM Financial Inc. posted a 7% decline in assets under management at the end of March.
Lake Shore Gold Corp. said it halted production at its Timmins West mine in Ontario on Monday and Tuesday following an accident that resulted in the death of a worker.
Advertiser MDC Partners Inc. raised its 2012 revenue outlook, as the company won new businesses and formed a joint venture in Brazil.
ON BAYSTREET
The TSX Venture Exchange fell 43.18 points to 1,502.45, while the Nasdaq Canada index slid 6.63 points to 411.49
All 14 Toronto subgroups were off at the outset, weighed mostly by metals and mining, down 2.7%, gold, off 2.2%, and global base metals, tumbling 2%.
ON WALLSTREET
In New York, stocks plunged in early trading Wednesday, as investors grew increasingly anxious about what the markets might look like without additional stimulus from the Federal Reserve
The Dow Jones Industrials hurtled earthward 151.90 points, or 1.2%, to open the day at 13,047.70, with all 30 stocks in the red.
The S&P 500 swooned 13.85 points to 1,399.53, and the Nasdaq staggered 44.15 points to 3,069.42
The selling was broad with financial stocks leading the decline. Goldman Sachs, JPMorgan Chase and Bank of America all fell roughly 2%.
Yahoo announced 2,000 job cuts, as the Internet giant continues to restructure.
Agricultural tech firm Monsanto raised its guidance and reported quarterly earnings that beat analyst expectations before Wednesday's open.
General Electric shares fell, after rating agency Moody's announced that it had downgraded the company's debt due to risks associated with its finance subsidiary, GE Capital Corp.
Shares of online gaming company Zynga jumped following a New York Post report that the firm is in talks with casino operator Wynn Resorts over a possible online gambling game.
Shares of IBM and cruise ship operator Carnival Corp both dropped on reports of analyst downgrades.
Some investors had been hoping the Fed would move toward another round of quantitative easing, but those prospects seemed less likely following Tuesday's release of minutes from the central bank's last month's meeting.
Adding to the anxiety, payroll processing firm ADP reported a lower-than-expected increase in private sector jobs for March ahead of the opening bell.
And once again, Europe became difficult for investors to ignore after Wednesday's auctions for Spain's debt failed to draw robust demand.
Economically speaking, private-sector employers added 209,000 workers in March, according to payroll processing firm ADP. That was fewer than the 217,000 that economists had expected.
Reports on Institute for Supply Management Services and crude oil inventories will also be released mid-morning.
The price on the benchmark 10-year U.S. Treasury gained ground, driving yields down to 2.24% from Tuesday’s 2.28%. Treasury prices and yields move in opposite directions.
Oil for May delivery shed $1.11 to $102.90 U.S. a barrel.
Gold futures for April delivery fell $46.40 to $1,625.60 U.S. an ounce.
