Canada's main stock index dropped in volatile trading on Tuesday, extending a steep decline in the previous session, as the recent selloff in the price of oil fueled concerns about the health of the global economy.
The S&P/TSX composite index was off its lows of the morning, but still negative 25.74 points to greet noon at 14,118.43
The Canadian dollar gained 0.41 cents to 87.54 cents U.S.
Financials gave back ground, with Royal Bank of Canada losing 1.3% to $78.81 and Bank of Montreal falling 1.3% to $78.33.
In the oil and gas group, Canadian Natural Resources advanced 1.9% to $36.33, and Suncor Energy climbed 0.8% to $33.97.
Talisman Energy's shares shot up 11.9%, to $4.81, after the company confirmed it was approached by several suitors for various transactions.
The gold-mining sector jumped, with Goldcorp advancing 4.2% to $23.24.
In other corporate news, AGF Management said it would cut its quarterly dividend by 70%, sending its shares tumbling 16.5% to $8.10.
ON BAYSTREET
The TSX Venture Exchange shed 1.31 points to 678.52
Nine of the 14 Toronto subgroups were lower by noon, with health-care stocks trailing 1.8%, financials sagging 1.1%, and telecoms off 1%.
The five gainers were led by gold, shining 4.8% brighter, materials, 2.3% more solid, and the metals and mining group, better by 1.8%.
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 185.83 points, or 1%, to pause for lunch Tuesday at 17,666.65, with Merck & Co. leading blue-chip losses that included 27 of 30 components.
The S&P 500 dipped 17.94 points to 2,042.37, with telecommunications the leading laggard and energy the best performing among its 10 major industry groups.
The NASDAQ index subtracted 28.59 points to 4,712.10.
Merck on Tuesday said it would go ahead with its $8.4-billion U.S. acquisition of Cubist Pharmaceuticals regardless of a court ruling that could hasten onto the market generic versions of Cubist's best-selling product.
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 jumped, lowering yields to 2.20% from Monday’s 2.25%. Treasury prices and yields move in opposite directions.
Oil prices gained 61 cents to $63.66 U.S.
Gold prices hiked $35.40 at $1,230.30 U.S.
