The Toronto stock market endured further losses Tuesday as traders try to gauge just how far oil prices have to fall before hitting bottom and consider whether U.S. interest rates will head higher sooner than expected.
The S&P/TSX composite index slipped 59.38 points to lead off Tuesday at 14,084.79
The Canadian dollar gained 0.35 cents to 87.47 cents U.S.
There was merger and acquisition talk on the markets as Talisman Energy Inc. said several parties including Spanish energy company Repsol have approached the oil and gas producer about potential deals -- but added there's no assurance any agreement will result.
Talisman and Repsol held inconclusive talks during the summer but the Calgary company's shares have plunged 64% since then, making it a more attractive takeover target. Talisman shares galloped 50 cents, or 11.6%, to $4.80.
And on the earnings front, Hudson's Bay Co. had a quarterly net loss of $1 million or seven cents a share and "normalized" earnings of $116 million, both improvements from the same time last year. Retail sales for the Toronto-based company that owns Hudson's Bay Co., Saks Fifth Avenuer and other retail banners, nearly doubled to $1.91 billion from $984 million a year earlier.
HBC shares eked up seven cents to $23.56
ON BAYSTREET
The TSX Venture Exchange shed 3.02 points to 676.81
All but four of the 14 Toronto subgroups were lower at the outset, with health-care stocks trailing 1.9%, telecoms off 1.8%, and financials sagging 1.4%.
The four gainers were led by gold, shining 4.3% brighter, materials, 2% more solid, and energy, 1.6% more energetic.
ON WALLSTREET
U.S. stocks declined on Tuesday, extending losses into a second session, as Wall Street echoed a global rout that came as China toughened collateral rules for short-term loans, increasing worries about the global economy.
The Dow Jones Industrials dipped 146.56 points to begin Tuesday at 17,958.79, with Merck & Co. leading blue-chip losses that including 26 of 30 components.
The S&P 500 dipped 17.05 points to 2,043.26, with telecommunications the leading laggard among its 10 major industry groups.
The NASDAQ index subtracted 46.77 points to 4,693.92.
Autozone jumped after the auto-parts retailer reported quarterly profit and revenue above estimates.
H&R Block fell after the tax-preparation firm reported an adjusted quarterly loss that was larger than expected, and Verizon Communications declined after the wireless carrier late Monday said promotional offers and price cuts would dent its fourth-quarter profit.
Whole inventories rose 0.4% in October versus expectations for a 0.1% gain.
Another report Tuesday had small business optimism rising in November to its highest level in almost eight years.
Overseas, the Shanghai Composite Index tanked more than 5% and gold jumped 2.7% as investors sought a safe haven.
Moving to propel local governments from using hazy financing instruments to raise funds, China stepped up its efforts at creating a more transparent municipal bond market.
Prices for 10-year U.S. Treasuries weakened, raising yields to 2.31% from Thursday’s 2.26%. Treasury prices and yields move in opposite directions.
Oil prices dipped $1.21 to $65.60 U.S.
Gold prices fell $16.70 at $1,191.00 U.S.
