Stocks in Canada’s biggest market fell to a five-week low on Monday, pressured by fresh concern about the global growth outlook, sustained pressure on crude prices oil and the anticipated start of U.S. Federal Reserve rate hikes as soon as December.
The S&P/TSX composite index fell 139.22 points, or 1%, to greet noon at 13,413.98, its lowest level since Oct. 2.
The Canadian dollar hiked 0.14 cents at 75.31 cents U.S.
The most influential movers on the index were Canadian National Railway Co, which fell 2.6% to $76.59, and Brookfield Asset Management Inc, which declined 2.9% to $44.48.
PrairieSky Royalty Ltd advanced 2.6% following news that Canadian Natural Resources Ltd will sell most of its royalty assets to the company in a $1.8-billion deal, joining other oil producers in shedding assets to weather a slump in crude prices.
Gold steadied near a three-month low.
Copper prices declined 0.2% to $4,975 U.S. a tonne.
On the economic front, Canada Mortgage and Housing Corporation said housing starts totaled 206,089 units in October compared to 202,793 in September.
ON BAYSTREET
The TSX Venture Exchange eked up 0.13 points to 534.41
All but one of the 13 TSX subgroups were lower by noon, as metals and mining skidded 3.7%, consumer discretionaries fell 1.6%, and real-estate moved lower 1.5%.
The lone gainer was in utilities, up 0.9%
ON WALLSTREET
U.S. equities traded sharply lower Monday as investors weighed a possible Federal Reserve rate hike in December.
The Dow Jones industrial average plunged 221.31 points, or 1.2%, to pause midday at 17,688.82. The blue chips index also fell back into negative territory for the year as IBM contributed most of the losses.
The S&P 500 fell 29.17 points, or 1.4%, to 2,070.03, as consumer discretionary fell nearly 2%.
The NASDAQ index stumbled 77.1 points, or 1.5%, to 5,070.02
The odds of the Fed raising rates for the first time in about a decade rose dramatically after the October non-farm payrolls report — released Friday — showed the U.S. economy added 271,000 jobs.
According to the CME Group, the probability of a December rate hike rose from about 58% to about 70%.
In corporate news, Plum Creek Timber, Dish Network and Hertz Global reported earnings before the bell. SunEdison, Lions Gate and Rackspace are all due after the bell.
DuPont named Edward Breen as its permanent chairman and chief executive officer.
L Brands was downgraded to "neutral" from "overweight" at JPMorgan Chase, based in part on unfavorable apparel industry trends.
Prices for 10-year U.S. Treasuries fell, raising yields to 2.35% from Friday’s 2.33%. Treasury prices and yields move in opposite directions.
Oil prices faded 45 cents a barrel to $43.84 U.S.
Gold prices slid 20 cents to $1,089.60 U.S. an ounce.
