Stocks in Canada’s biggest market sank more than 1% on Thursday, hitting the lowest level of the year, as investor concern about prospects for global economic growth continued to cast a pall over markets.
The S&P/TSX composite index stumbled 161.16 points, or 1.2%, to greet noon at 13,875.47
The Canadian dollar inched up 0.33 cents at 76.51 cents U.S.
The TSX index was on track for its ninth decline in 11 sessions
Royal Bank of Canada was among the heaviest drags on the index, shedding 1.8% to $74.37. Toronto-Dominion Bank was not far behind, declining 1.1% to $51.38.
Energy stocks, which have fallen more than 11% through eight straight sessions of declines, were trading at the lowest levels since 2004.
In the sector, Enbridge Inc fell 2% to $52.74.
In the materials group, Barrick Gold Corp surged 6.2% to $10.98 while Goldcorp Inc climbed 2.7% to $20.39.
The always volatile stock of Valeant Pharmaceuticals International tumbled 3.4% to $309.29 after the company said it would buy Sprout Pharmaceuticals, maker of the first approved treatment for low sexual desire in women, for about $1 billion plus milestone payments.
On the economic front, Statistics Canada reported this morning that 531,700 people drew regular Employment Insurance benefits in June, up 5,200 or 1% from May.
The agency also told us that wholesale trade rose 1.3% to $55.3 billion in June, more than offsetting the decline in May, on the strength of gains in five of seven sub-sectors. In the second quarter of 2015, wholesale sales rose 2.1% compared with the first quarter.
ON BAYSTREET
The TSX Venture dropped 3.46 points to 554.71.
All but four of the 14 TSX subgroups were lower by noon, with health-care off 2.7%, industrials fell 2.1%, consumer staples off 1.5%.
The four gainers were led by gold, shining 4.5% brighter, materials, up 1.4%, and metals and mining, ahead 1%.
ON WALLSTREET
U.S. stocks traded more than 1% lower on Thursday as investors weighed fresh lows in oil prices and continued uncertainty over the timing of a rate hike.
The Dow Jones industrial average dumped 194.09 points, or 1.1%, to 17,154.64, with Merck and Disney leading nearly all blue chips lower. The index is off more than 3.5% for the year so far.
The S&P 500 dropped 24.48 points, or 1.2%, to 2,055.13, with consumer discretionary stocks the greatest decliners on the day. Energy is the greatest laggard for the year, down 17%.
The NASDAQ index fell 89.65 points, or 1.8%, to 4,929.40, with Apple off more than 2% and biotechs falling more than 1.5%. The index is up more than 4% year-to-date.
In earnings news, Sears lost an adjusted 67 cents U.S. per share for its latest quarter, smaller than the loss of $2.50 U.S. estimated by the lone analyst providing an estimate. Profit margins improved at both the Sears and K-Mart chains, but same-store sales declined.
Hewlett Packard, Gap, Intuit, Marvell Tech, Ross Stores, Salesforce.com and Fresh Market are all due after the bell.
Initial U.S. jobless claims data came in at 277,000, but remained consistent with an improving labour market trend that could support a rate hike this year.
The Philadelphia Fed index for August came in at 8.3, while leading indicators declined 0.2% in July. Existing home sales rose to an eight-year high.
Prices for 10-year U.S. Treasuries improved, lowering yields to 2.10% from Wednesday’s 2.12%. Treasury prices and yields move in opposite directions.
Oil prices gained 44 cents a barrel to $41.24 U.S.
Gold prices hiked $21.10 to $1,146.20 U.S. an ounce.
