Economic worries centred around Asia and Europe and caution over third-quarter earnings reports left the Toronto stock market sharply lower Tuesday afternoon.
The S&P/TSX composite index hurtled lower 166.67 points, or 1.1%, to close Tuesday at 14,576.45
The Canadian dollar lost 0.31 cents at 89.51 cents U.S.
On Monday, Freeport-McMoRan Inc. announced it is selling 80% of its stake in the Candelaria-Ojos del Saladoa copper and gold mine in Chile for at least $1.8 billion U.S. to Canadian resource company Lundin Mining, whose shares fell 10 cents to $5.23.
The gold sector was down while Barrick Gold ducked back 55 cents, or 3.5%, to $15.29, and Goldcorp fading 53 cents, or 2.1%, to $25.23.
The latest overseas economic data helped depress oil prices. Energy firms such as Imperial Oil dipped 66 cents, or 1.3%, to $51.67, and Suncor dropped 97 cents, or 2.5% to $38.58
Falling railway stocks helped send the industrials sector down. Canadian Pacific plummeted $7.61, or 3.2%, to $231.25, while Canadian National retreated $2.47, or 3.2%, to $75.25.
Economically speaking, Statistics Canada reported this morning that the total value of building permits issued by Canadian municipalities fell 27.3% to $6.7 billion in August, following three months of double-digit increases.
The agency says the August decline was mainly the result of lower construction intentions for non-residential buildings in Quebec and residential buildings in Ontario.
ON BAYSTREET
The TSX Venture Exchange dipped 13.15 points to 854.83.
All but one of the 14 Toronto subgroups were down by the closing bell, as metals and mining tumbled 3.1%, gold gave back 2.9%, and global base metals fell 2.6%.
Only utilities held out against the negative tide, moving 0.8% higher.
ON WALLSTREET
U.S. stocks fell sharply on Tuesday, extending losses into a second session, as investors fretted slowing economic growth in Europe and the potential impact on coming third-quarter earnings from U.S. corporations.
The Dow Jones Industrials plummeted 272.58 points, or 1.6%, to 16,719.33.
The S&P 500 stumbled 29.72 points to 1,935.10, its lowest level since Aug. 12. The NASDAQ index dumped 69.60 points to 4,385.20.
General Motors declined after Morgan Stanley cut its outlook on GM earnings and as the auto manufacturer's fund chief raised the count of those killed in crashes related to defective ignition switches.
CF Industries Holdings rallied after Yara International canned its chief executive, saying it was not suited to leading merger discussions with the fertilizer maker.
The International Monetary Fund downgraded its global growth forecast for this year and 2015, with the organization that represents 188 countries now projecting world growth to come in at 3.3% in 2014, down 0.1% from its July forecast. Next year, it expects growth of 3.8%.
Prices for 10-year U.S. Treasuries hiked, lowering yields to 2.35% from Monday’s 2.42%. Treasury prices and yields move in opposite directions.
Oil prices were down $1.68 to $88.69 U.S. a barrel.
Gold prices acquired $3.80 to $1,211.10 U.S. an ounce.
