The Toronto stock market fell sharply across all sectors Wednesday and prices for oil and metals retreated after the U.S. Federal Reserve indicated further economic stimulus isn’t in the cards.
The S&P/TSX Composite Index tumbled 163.36 points, or 1.1%, to approach noon at 12,160.25
The Canadian dollar dropped 0.54 to 100.39 cents U.S.
In the energy sector, Cenovus Energy shed 37 cents to $35.11.
The base metals component fell as the May copper contract lost nine cents to $3.83 U.S. a pound. Teck Resources declined 63 cents to $35.27.
The industrials sector lost, as sliding commodities and resource stocks sent Finning International, the biggest dealer of Caterpillar heavy mining equipment, down 28 cents to $27.21.
The gold sector lost as Goldcorp Inc. was 79 cents lower to $42.31.
Financials also contributed to TSX weakness with Sun Life Financial down 29 cents to $23.38.
Rona Inc. has denied that the company is up for sale after stock in the home renovation retailer jumped more than 12% in heavy trading Tuesday on the Toronto Stock Exchange.
The Quebec-based retailer issued the denial in response to movement in its stock after Robert Hull, chief financial officer of Lowe’s Companies Inc., said his U.S.-based rival might be interested if Rona put itself up for sale. On Wednesday, Rona shares lost 48 cents, or 4.58%, to $9.98.
ON BAYSTREET
The TSX Venture Exchange fell 53.38 points to 1,492.25, while the Nasdaq Canada index slid 17.42 points to 400.70
All but one of the 14 Toronto subgroups were off at noon, weighed mostly by gold, off 3.4%, metals and mining, down 3.1%, and materials, shedding 2.8%.
Only telecoms made it into the green, and only 0.2% at that.
ON WALLSTREET
In New York, stocks plunged 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 break for lunch and (hopefully) regroup at 13,051.70.
The S&P 500 swooned 16.10 points to 1,397.28, and the Nasdaq staggered 54.08 points to 3,059.49
The selling was broad, with financial stocks leading the decline. Goldman Sachs, JPMorgan Chase and Bank of America all fell more than 2%.
Gold dropped more than 3%, hitting its lowest levels since early January. In a sign of increasing anxiety over the markets' trajectory, the VIX also spiked roughly 8%. The index is still far below 30, though, the level that typically signals a high level of investor fear.
Yahoo announced 2,000 job cuts, as the Internet giant continues to restructure.
JPMorgan Chase said the Commodity Futures Trading Commission required the bank to pay a $20-million U.S. civil penalty to settle charges that it had unlawfully handled customer funds ahead of the Lehman Brothers bankruptcy.
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.
The European Central Bank said Wednesday that it was holding its main interest rate steady at 1%. ECB chief Mario Draghi spoke to reporters this afternoon.
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.
The ISM Services index for March increased to 56, less than expected. Still, any number above 50 signals growth.
Looking ahead, investors will be closely monitoring the U.S. Labor Department's jobs report for March, which is due out Friday. However, U.S. markets will be closed in observance of Good Friday and bond markets will close early.
The price on the benchmark 10-year U.S. Treasury gained ground, driving yields down to 2.25% from Tuesday’s 2.28%. Treasury prices and yields move in opposite directions.
Oil for May delivery shed $2.25 to $101.73 U.S. a barrel.
Gold futures for April delivery fell $46.40 to $1,625.60 U.S. an ounce.
