Stocks in Toronto again tumbled as weak global manufacturing activity and an Ebola health scare in the United States spooked world markets.
The S&P/TSX composite index lost 112.08 points to begin the day at 14,693.36
The Canadian dollar gained 0.08 cents at 89.53 cents U.S.
The index dropped to a near four-month low on Wednesday as worries about a slowdown in U.S. factory activity and news of the first confirmed case of Ebola in the United States fueled a broad selloff.
Struggling Sears Holdings Corp said it would raise up to $380 million U.S. by selling most of its stake in Sears Canada through a rights issue, generating liquidity ahead of the crucial holiday shopping season. Sears Canada shares dipped 14 cents to $10.98.
Canadian Pacific Railway aims to boost its annual revenue to $10 billion in 2018 and more than double earnings per share over the next four years, Chief Executive Hunter Harrison said on Wednesday. CP shares climbed $6.09, or 2.7%, to $228.90.
Deutsche Bank raised the rating on Encana Corp. to buy. Encana shares took on 10.5 cents to begin the day at $23.99.
ON BAYSTREET
The TSX Venture Exchange slid 7.74 points to 888.61.
ON WALLSTREET
U.S. stock investors remained cautious, with the main benchmarks struggling to find direction and dipping in and out of negative territory in early-morning trade on Thursday.
The Dow Jones Industrials dipped another 12.42 points to 16,792.29.
The S&P 500 slipped 26.13 points to 1,946.16. The NASDAQ index tumbled 71.3 points to 4,422.09.
Esperion Therapeutics Inc. surged 17%, after saying late Wednesday a mid-stage clinical trial showed its drug candidate, ETC-1002, significantly lowered bad cholesterol.
DirecTV was up 1% after the satellite-TV provider late Wednesday said it had reached a multi-year agreement with the National Football League.
Bank of America Corp. rose 0.6% after the bank late Wednesday said Chief Executive Officer Brian Moynihan will succeed Charles Holliday Jr. as chairman, effective immediately.
Reporting ahead of the open, Constellation Brands Inc. missed estimates for sales and profits. Shares fell 2.1%.
Economically speaking, the number of people applying for new unemployment benefits fell by 8,000 to 287,000 in the last week of September, yet another sign that layoffs remain low and the labour market continues to improve.
Also this morning, the U.S. government is likely to report that factory orders fell by as much as 10% in August, though mainly because of a temporary dip in demand for new aircraft and autos.
Investors are still digesting the European Central Bank’s policy action and economic data in the U.S., including stronger-than-expected jobless claims. The early take appears to be that European Central Bank President Mario Draghi didn’t do enough to change dour views about Europe’s growth prospects.
The ECB left rates unchanged at its meeting in Naples, while Draghi, at a press conference, offered details of a new asset purchase meant to rev up the creaky European economy.
Prices for 10-year U.S. Treasuries sagged, upping yields to 2.42% from Wednesday’s 2.40%. Treasury prices and yields move in opposite directions.
Oil prices lost 51 cents to $90.22 U.S. a barrel.
Gold prices skidded $1.90 to $1,213.60 U.S. an ounce.
