Canada's main stock index dropped to its lowest level in eight months on Wednesday as sluggish U.S. economic data revived concerns about global growth and the price of oil remained volatile.
The S&P/TSX composite index lost 175.22 points, or 1.3%, to greet midday Wednesday at 13,861.46
The Canadian dollar docked 0.02 cents at 88.50 cents U.S.
The benchmark TSX is down about 11% since hitting a record high last month.
Financials were down as Bank of Montreal weakened 1.5% to $79.59, and Toronto Dominion Bank fell 1.5% to $51.80.
Shares of energy producers lost ground, as Talisman Energy shed 2% to $7.32, and Suncor Energy gave back 0.5% to $35.93.
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 18.93 points to 784.15.
All but two of the 14 Toronto subgroups were lower by noon hour, with financials crumbling 2.6%, metals and mining down 2.4%, and industrials off 1.9%.
The two gainers were gold, up 1.5%, and materials, eking up 0.2%.
ON WALLSTREET
U.S. stocks returned to a decline after opening sharply lower on Wednesday as Europe markets closed in the red and weak domestic economic data weighed heavily on markets.
The Dow Jones Industrials plummeted 297.46 points, or 1.8%, by noon hour to 16,017.73
The S&P 500 dumped 33.92 points to 1,843.78. The NASDAQ index surrendered 61.71 points to 4,165.46.
In the United States, transports fell about 2% in late morning trade led by a decline in airlines on reports that the new Ebola patient flew the day before falling ill. However, analysts said there were no reports of flight cancellations due to the disease.
Financials led declines on the S&P and traded more than 2% lower, while JPMorgan Chase and Goldman Sachs were among the greatest blue-chip decliners. Prior to the start of trading Bank of America posted a smaller-than-expected loss, while BlackRock reported better-than-expected earnings.
In a cumulative move of about 600 points in losses and gains, the Dow Jones Industrial Average came off lows to trade about 250 points lower after falling as much as 369.59 points in the open, or about 2%, to below 16,000, with the initial decline led by Intel and Disney. The drop was the Dow's largest intraday decline since June 30, 2013, when it fell 380 points.
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 U.S. Federal Reserve 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 dipped 17 cents to $81.67 U.S. a barrel.
Gold prices moved higher $11.20 to $1,245.50 U.S. an ounce.
