The Toronto stock market extended its losses Thursday with energy stocks in focus as oil prices fell below $90 U.S. a barrel for the first time since April 2013 amid lower demand and rising supplies.
The S&P/TSX composite index were hammered 221.12 points, or 1.2%, to greet noon ET at 14,584.32.
The Canadian dollar gained 0.10 cents at 89.68 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.
On the corporate front, Canadian Pacific Railway remains one of the stocks to watch, a day after the company said it can double its profits and drive its revenues to $10 billion over the next four years.
CEO Hunter Harrison said CP is aiming at a two-fold increase in earnings per share between this year and 2018. CP shares moved skyward $5.20, or 2.3%, to $228.01.
Cash strapped U.S. retailer Sears Holdings Corp. is selling most of its stake in its Canadian unit to raise as much as $380 million U.S.
The sale of the majority of its 51% stake in Sears Canada Inc. to its own shareholders will give the retailer some breathing room as it heads into the crucial holiday season. Sears shares gave back 24 cents to $10.88.
Elsewhere on the commodity markets, December copper was down two cents to $3.02 U.S. as Teck Resources fell 81 cents, to 3.9%, to $19.93.
ON BAYSTREET
The TSX Venture Exchange tumbled 19.80 points to 876.55.
All but one of the 14 Toronto subgroups were negative mid-Thursday, as metals and mining capsized 3%, energy moved lower 2.6%, and global base metals were 2.5% to the bad.
The only holdout with in telecoms, eking up 0.02%.
ON WALLSTREET
U.S. stocks declined for a fourth session on Thursday, extending their worst start to October in three years, as the International Monetary Fund called the global economy softer than thought and the European Central Bank said it would step up stimulus.
The Dow Jones Industrials dipped another 71.8 points to 16,732.91.
The S&P 500 slipped 12.08 points to 1,934.08. The NASDAQ index was off its lows of the morning, but still negative 32.58 points to 4,389.51.
Twitter climbed after JPMorgan Chase upgraded its shares. Tesla Motors rose after the maker of electric cars said it would come out with a new offering next week. DirecTV gained after inking a new deal to keep airing National Football League games on Sundays.
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.
Less positive was a 10.1% drop in factory orders in August, with the number worse than the estimated 8.7% decline.
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 take appeared 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 2.41% from Wednesday’s 2.40%. Treasury prices and yields move in opposite directions.
Oil prices lost 87 cents to $89.86 U.S. a barrel.
Gold prices skidded $1.70 to $1,217.20 U.S. an ounce.
