Toronto’s major stock index dropped to its lowest in four weeks on Wednesday after the World Bank cut its global economic growth forecasts for this year and next, weighing on shares of most major sectors.
The S&P/TSX composite index erased 218.16 points, or 1.5%, to move into noon hour at 13,969.
The Canadian dollar eked higher 0.13 cents to 83.76 cents U.S.
The TSX has declined in each of the last four sessions and is down about 4% since the start of the year.
The World Bank said it lowered its projections due to disappointing economic prospects in the euro-zone, Japan and some major emerging economies.
Some mining shares were also hit hard by a dive in copper prices. First Quantum Minerals shed 14% to $11.58 and Teck Resources tumbled 10.9% to $13.06. The two stocks were among the most influential decliners on the index.
Financials doffed some of their strength, as Toronto-Dominion Bank lost 2.5% to $50.66, and Royal Bank of Canada declined 1.5% to $75.56.
With oil prices staying under pressure, shares of energy producers fell, as Suncor Energy dropped 1.4% to $34.31, and Canadian Natural Resources was down 0.9% at $31.64.
ON BAYSTREET
The TSX Venture Exchange slid 6.03 points to 664.62
All 14 Toronto subgroups were lower, weighed by the metals and mining sector, stumbling 9.4%, global base metals, down 6%, and consumer discretionaries, off 2.5%.
ON WALLSTREET
U.S. stocks fell sharply on Wednesday, continuing losses into a fourth day, as a thrashing of commodities and disappointing retail sales increased worry that the global economy is slowing.
The Dow Jones Industrials dropped 246.99 points, or 1.4%, to 17,366.69, with JPMorgan Chase leading blue-chip losses that included 28 of 30 components.
The S&P 500 slumped 22.97 points to 2,000.06, with materials and financials weighing the most among its 10 major industries, and utilities higher.
The NASDAQ index skidded 37.13 points to 4,624.37.
Chase dropped in early New York trading after reporting a decline in fourth-quarter profit. Wells Fargo also fell after the mortgage lender posted results in line with expectations.
The ongoing decline in the price of crude extended to metals, with the price of copper stumbling as the World Bank reduced its global growth forecast, pointing to soft expansion in Europe and China.
On the economic beat, the U.S. Commerce Department reported retail sales slid the most in a year last month, down 0.9%.
A later economic report came in as expected, with U.S. business inventories rising 0.2% in November.
Prices for 10-year U.S. Treasuries hiked sharply, dropping yields to 1.82% from Tuesday’s 1.89%. Treasury prices and yields move in opposite directions.
Oil prices gained 22 cents per barrel to $46.11 U.S.
Gold prices acquired $4.30 an ounce to $1,238.70 U.S.
