The Toronto stock market was lower Friday as oil retreated further below the $60-U.S. a-barrel level following another indication of weakness in the world's second-biggest economy and a revised forecast from the International Energy Agency.
The S&P/TSX composite index dropped 173.22 points, or 1.3%, to close a turbulent day and week at 13,731.90
The Canadian dollar dumped 0.39 cents to 86.41 cents U.S.
The Toronto stock market is in for steep losses this week -- TSX has plunged 12% from summertime highs and moved into correction territory, defined as a slide of at least 10% from recent levels. The Toronto market's main index is only about 200 points away from where it started the year.
The energy sector had a rare, positive day, having been a huge weight on the TSX, plunging almost 30% year to date, reflecting a drop in oil prices of about 45% since mid-year amid lower demand and far higher supplies, a situation made all the worse by OPEC's refusal to cut production.
Talisman Energy was a big positive for the TSX energy sector Friday. Its shares rocketed 74 cents, or 17.4% to $5.00 after the Financial Times reported that Spanish oil group Repsol is in talks to acquire Talisman in a deal that could value the Calgary company's equity at up to $8 billion U.S.
It says the price being negotiated is in a range between $6 and $8 per share, which would represent a premium of up to 117% to Talisman's share price Thursday.
Like other energy companies, Talisman's shares have been hit hard by falling oil prices and are down sharply from their 52-week high of $13. And analysts think other companies will also become ripe takeover targets while the market sorts out where oil prices should be.
Elsewhere on the TSX, the base metals sector was down as March copper was up a penny at $2.93 U.S. a pound. Teck Resources slumped 83 cents, or 6.1%, to $12.81.
The gold sector faded with Barrick Gold down 36 cents, or 2.6%, to $13.28.
Figures released on Friday showed China's factory output growth slowed more than expected in November and growth in investment neared a 13-year low.
A steep descent in the oil price in recent weeks has raised concerns about the commodity's producers and the broader Canadian equity market, which has a large concentration of energy stocks.
ON BAYSTREET
The TSX Venture Exchange fell 9.72 points to 653.78
All 14 Toronto subgroups were lower, metals and mining getting bruised 3.3%, global base metals down 2.7%, and materials stiffed 1.9%.
ON WALLSTREET
U.S. stocks declined on Friday, with benchmark indexes posting sizable weekly losses, as crude's ongoing slide rattled investors.
The Dow Jones Industrials tumbled 315.51 points, or 1.8%, to close Friday at 17,280.83, down 3.8% from the week-ago close, its worst weekly loss since November 2011. International Business Machines led blue-chip losses that extended to all 30 components.
The S&P 500 slid 33 points to 2,002.33, down 3.5% for the week, with materials falling the most among its 10 major industry groups, with all in negative terrain. It was the index’s worst weekly hit since May 2012.
The NASDAQ index dipped 54.56 points to 4,653.60, off 2.7% from last Friday's close.
Adobe Systems gained after the software maker said it would acquire stock-photo company Fotalia for $800 million U.S. and posted quarterly results that beat expectations.
U.S. wholesale prices declined 0.2% drop in the producer price index in November after a 0.2% rise the previous month.
Oil prices fell further after the International Energy Agency reduced its outlook for global demand.
Equities around the globe dropped after November Chinese factory production slowed more than forecast.
Prices for 10-year U.S. Treasuries gained sharply, lowering yields to 2.10% from Thursday’s 2.18%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.86 per barrel to $58.09 U.S.
Gold prices slid $2.20 an ounce at $1,223.40 U.S.
