Mining stocks helped push the Toronto stock market lower Monday as commodity prices were pressured in the wake of weak industrial data from China.
The S&P/TSX composite index gave back 49.02 points to close the session at 15,482.56
The Canadian dollar recovered 0.31 cents to 90.52 cents U.S.
Goldman Sachs has downgraded TransCanada Corp. from neutral to sell with a price target of $47 U.S. One analyst noted high valuation compared to peers. The stock was down 60 cents to $58.88 on the TSX .
Most TSX sectors were lower on the TSX, led by a 1.8% slide in the base metals sector as weak Chinese data pushed December copper down two cents to $3.09 U.S. a pound. Teck Resources gave back 36 cents to $23.34.
The gold sector was off as Barrick Gold dipped 14 cents to $18.19, while Goldcorp inched up four cents to $27.88
The energy sector was ahead as Imperial Oil took on six cents to $55.85,
In the economic docket, the average price of a Canadian home increased by more than 5% in the past year, according to the Canadian Real Estate Association, which adds the average home sold in Canada went for $398,618 in August.
ON BAYSTREET
The TSX Venture Exchange dropped 6.27 points to 981.66.
All but two of the 14 Toronto subgroups were lower Monday, as metals and mining stocks dropped 1.8%, global base metals slid 1.3%, and consumer discretionaries fell 1.2%
The two gainers were energy, up 0.3%, and utilities, inching up 0.2%.
ON WALLSTREET
U.S. stocks closed mostly lower on Monday with losses led by technology and small-cap stocks as investors continued to unload riskier position ahead of this week’s pivotal Federal Reserve policy meeting.
The Dow Jones Industrials moved into the green 43.64 points to 17,031.14.
The S&P 500 dropped 1.41 points to 1,984.13. The NASDAQ dipped 48.40 points to 4,518.90
The speculation that the central bank may adopt a more hawkish tone in its statement after the two-day meeting on Wednesday had been weighing on stock prices since the beginning of the month.
European and U.S. brewers were in focus after news reports of potential financing of deals between AB InBev and SABMiller. Molson Coors would benefit from such a deal as U.S. antitrust authorities would likely require the combined entity to sell SAB’s stake in the MillerCoors US JV. Molson Coors jumped 5.9%. AB InBev rose 3.1%.
RadioShack Corp. shares soared 16% to $1.06 U.S. after the consumer electronics retailer said that its chief financial officer, John Feray, has resigned. Holly Etlin, an adviser to the company, is taking over in the interim.
Netflix shares fell 4% as the company launched in three new markets in Europe on Monday. According to some media outlets, it is receiving a cold reception in France.
Official figures from China on Saturday showed the country’s industrial output growth slipped in August to its lowest level since the 2008 global financial crisis, dealing a blow to companies and economies dependent on China.
Investors are watching for signs that the Fed may signal the start of interest-rate hikes earlier than expected ahead of a two-day Federal Open Market Committee meeting set to begin Tuesday.
The Empire State manufacturing survey improved to a near five-year high, though the details were not as strong as the headline index, the New York Fed said Monday. Futures have not moved after the release.
Separately, industrial production declined unexpectedly in August to mark the first drop since January, and a series of revisions left output in July lower than previously estimated, according to data released Monday.
Prices for 10-year U.S. Treasuries gained, lowering yields to 2.59% from Friday’s 2.61%. Treasury prices and yields move in opposite directions.
Oil prices gained 58 cents to $92.85 U.S. a barrel.
Gold prices gained $2.20 to $1,233.70 U.S. an ounce.
