The sharply lower trend continues for stocks in Toronto Wednesday morning, on persistent fear over the health of the global economic recovery.
The S&P/TSX composite index lost 177.46 points, or 1.3%, to open Wednesday at 13,859.22
The Canadian dollar recovered 0.20 cents at 88.72 cents U.S.
The index hit an eight-month low on Tuesday, dropping more than 11% from last month's record high, as plunging international oil prices took domestic energy producers down with them.
Canada's second-largest pension fund, Caisse de depot et placement du Quebec, is set to make a big foray into Mexico following an initial $100-million investment in real estate, according to two sources familiar with the matter.
CIBC cut the target on Amica Mature Lifestyles to $7.75 from $8.00, with a sector perform rating. Amica shares fell 10 cents to $6.90.
National Bank Financial cut the target price on HudBay Minerals to $10.50 from $12.00. HudBay shares gave up 35 cents, or 4.1%, to $8.25.
ISI Group started coverage on Precision Drilling Corp. with a buy rating and $14.00 price target. Precision shares eked out a gain of a penny to $9.40.
Economically speaking, figures released by the Canadian Real Estate Association showed that national home sales fell 1.4% from August to September. Actual (not seasonally adjusted) activity stood 10.6% above September 2013 levels. CREA also said the number of newly listed homes declined by 1.6% from August to September.
ON BAYSTREET
The TSX Venture Exchange dropped 15.14 points to 787.94.
All but two of the 14 Toronto subgroups were lower at the outset, as metals and mining forfeited 2.1%, energy, sliding 1.7%, and industrials were off 1.5%.
The two gainers were gold and consumer staples, each up 0.3%.
ON WALLSTREET
A trio of weak data, showing a pullback in consumer spending, softer manufacturing and falling inflation, fueled selling Wednesday in an already jittery stock market on fears that the U.S. economy cannot hold the line against a global slowdown.
The Dow Jones Industrials plummeted 110.71 points off the top to 16,204.48, reportedly after dumping 350 points in the early going.
The S&P 500 dumped 12.20 points to 1,865.50. The NASDAQ index surrendered 21.86 points to 4,205.31.
Economists immediately slashed their U.S. GDP growth forecast for the third quarter. Barclays and Credit Suisse said tracking GDP growth fell to 3% from 3.3%
Before the opening bell, the September retail sales report showed the first decline in eight months. Sales were down 0.3%, in large part due to fewer vehicle purchases and a decline in gasoline. Inflation data also disappointed with the producer-price index for final demand decreasing 0.1%, versus expectations for a 0.1% increase.
The economic reports also confirmed some traders' views that the Fed will not move to hike interest rates in the middle of next year, as expected by many Wall Street economists.
Manufacturing data for the New York region also showed a slowdown, with the New York Fed's Empire State index plunging to 6.2% in October after hitting a five-year high last month.
Prices for 10-year U.S. Treasuries spiked yet again, dropping yields to 2.03% from Tuesday’s 2.21%. Treasury prices and yields move in opposite directions.
Oil prices faded 20 cents to $81.64 U.S. a barrel.
Gold prices picked up $12.40 to $1,246.70 U.S. an ounce.
