The Toronto stock market chalked up another decline Tuesday afternoon as fresh concerns about China's economic growth sent mining stocks reeling.
The S&P/TSX composite index faltered 77.85 points to end Tuesday at 14,187.16, after being down more than 100 points early in the afternoon.
The Canadian dollar was positive 0.17 cents to 83.68 cents U.S.
The base metals sector was a major decliner, while March copper fell eight cents to $2.65 U.S. a pound amid mixed economic news from China. Exports from the world's second-largest economy rebounded in December but imports shrank in a sign of weak domestic demand.
Chinese demand for imported oil, iron ore, food and other goods has cooled as economic growth has slowed. Copper prices have plunged 20% over the last year to 2009 lows. Major losers included First Quantum Minerals, which tumbled $2.35, or 14.9%, to $13.47, and Teck Resources, which was $87 cents lower, or 5.9%, at $14.72.
The gold sector was down sharply, even as investors seeking safety sent bullion prices higher for a third day.
Goldcorp Inc. was down $1.35, or 5.3%, to $24.37 as the miner warned that it may be required to write down the value of its Cerro Negro in Argentina by up to $2.7 billion U.S.
It says the mine faces a number of challenges that are affecting its long-term value, including foreign-exchange restrictions and inflation in the country.
The energy sector fell while oil prices continued to tumble as the United Arab Emirates' oil minister, Suhail Mohamed Faraj al-Mazrouei, said Tuesday that the Organization of the Petroleum Exporting Countries will stick to its decision to keep oil output unchanged regardless of current oil prices.
Imperial Oil removed 42 cents to $44.92, while Canadian Natural Resources eked up in price eight cents to $31.89
Financials also suffered, most notably Royal Bank of Canada, down 20 cents to $76.61, while among industrials, Bombardier Inc. gained 11 cents to $4.04.
ON BAYSTREET
The TSX Venture Exchange descended 9.34 points to 670.65
Eight of the 14 Toronto subgroups were lower on the day, as metals and mining stocks tumbled 8.6%, gold capsized 4.9%, and materials faded 4.5%.
The half-dozen gainers were led by telecoms, up 1%, while information technology and real-estate each gained 0.7%.
ON WALLSTREET
U.S. stocks fell on Tuesday, after a near 300-point rally on the Dow evaporated amid falling commodity prices and worries Germany would throw cold water on the European Central Bank taking additional steps to bolster the region's economy.
The Dow Jones Industrials finished in the red 27.16 points to 17,613.68.
The S&P 500 slumped 5.23 points to 2,023.03, with materials and energy hardest hit among its major sectors, all 10 of which were in decline.
The NASDAQ index dipped 3.21 points to 4,661.50
KB Home led declines among homebuilders after it projected a "significant" drop in gross margins in the current quarter. Apple shares surged after Credit Suisse upgraded the supplier of consumer technology to outperform from neutral.
With the fourth-quarter earnings season started, investors are on the lookout for the effect of crude's decline on the S&P 500's collective bottom line, with oil prices on Tuesday falling to near six-year lows as a major OPEC producer stuck to the cartel's decision not to reduce output.
Alcoa led off earnings season with sizable gains, but those initial gains evaporated, with the aluminum producer turning lower after reporting better- than-expected results late Monday
Experts said reports from overseas that had Germany downplaying the notion of further quantitative easing by the ECB helped push the market lower
Prices for 10-year U.S. Treasuries recovered, lowering yields to 1.89% from Monday’s 1.91%. Treasury prices and yields move in opposite directions.
Oil prices regained 22 cents per barrel to $46.29 U.S.
Gold prices dipped one dollar an ounce to $1,231.80 U.S.
