The Toronto stock market racked up steep, triple-digit losses for a second session Wednesday after the U.S. Federal Reserve indicated further economic stimulus isn’t in the cards.
The S&P/TSX Composite Index tumbled 144.95 points, or 1.2%, to end the day at 12,178.66
The Canadian dollar dropped 0.56 to 100.37 cents U.S.
Cenovus Energy shed $1.27 to $34.21 while Canadian Natural Resources lost 43 cents to $32.73.
The base metals component fell as the May copper contract lost 11 cents to $3.81 U.S. a pound.
Teck Resources declined 22 cents to $35.68 and First Quantum Minerals dropped 73 cents to $18.37.
The industrials sector lost ground. Sliding commodities and resource stocks sent Finning International, the biggest dealer of Caterpillar heavy mining equipment, down 23 cents to $27.26.
The gold sector stumbled as Goldcorp Inc. was $2.08 lower to $41.02 and Barrick Gold Corp. faded $1.36 to $41.17.
Financials also contributed to TSX weakness with Sun Life Financial down 38 cents to $23.29 while Scotiabank climbed two cents to $55.47.
In corporate news, 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 13 cents, or 1.24%, to $10.35.
ON BAYSTREET
The TSX Venture Exchange fell 46.49 points to 1,499.14, while the Nasdaq Canada index slid 8.82 points to 402.36
All but one of the 14 Toronto subgroups were off on the day, weighed mostly by gold, off 3.6%, energy, shedding 2.8%, and materials, down 2.7%.
Only telecoms made it into the green, and only 0.4% 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 staggered 124.80 points, or 1%, to close at 13,074.80, with all 30 blue-chip components in the red.
The S&P 500 swooned 14.41 points to 1,398.97, and the Nasdaq erased 45.48 points to 3,068.09
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 last month's meeting of the central bank.
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.
Wednesday's selloff was broad, with financial stocks leading the decline. Goldman Sachs, JPMorgan Chase and Bank of America all fell more than 2%.
Yahoo announced 2,000 job cuts, as the Internet giant continues to restructure.
JPMorgan Chase said the Commodity Futures Trading Commission slapped the bank with 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.
Burger King announced Tuesday that it planned to re-list on the New York Stock Exchange within 90 days, after its owners sold 29% of the company to a U.K. investment fund.
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.
Shares of disk drive company SanDisk fell sharply, after the company cut its outlook.
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 2.24% from Tuesday’s 2.28%. Treasury prices and yields move in opposite directions.
Oil for May delivery shed $1.97 to $102.01 U.S. a barrel.
Gold futures for April delivery fell $46.40 to $1,625.60 U.S. an ounce.
