Equities in this country dropped sharply on Thursday as the nation’s largest banks retreated on earnings amid comments by central bank officials in the U.S. and Europe.
The S&P/TSX composite index descended 139.15 point, or 1%, to close Thursday at 13,324.67
The Canadian dollar squeezed up 0.01 cents to 75 cents U.S.
Toronto-Dominion Bank, the nation’s largest lender, declined 1.4% to $54.30, and Canadian Imperial Bank of Commerce slid 2.2% to $98.58, to pace a drop in financial services stocks. Higher earnings at Toronto-Dominion offset $243 million in restructuring costs related to job cuts. CIBC tumbled after net income slid.
Barrick Gold hiked 1.9% to $10.09, and Goldcorp leaped 2% to $16.10.
The energy group fell 0.2%, Enbridge, Canada’s largest pipeline company, fell 3% to $45.82, after raising its quarterly dividend and announcing a five-year strategic plan.
TransCanada Corp, Canada’s second largest pipeline operator, fell 2.5% to $41.62, after it said it raised its stake in the Bruce nuclear power plant in Ontario to 48.5%
ON BAYSTREET
The TSX Venture Exchange dropped 2.81 points to 511.72.
All but three of the 13 TSX subgroups were down, with health-care sliding 2.8%, industrials falling 1.6%, and consumer discretionary stocks 1.4% to the bad.
The three gainers were gold, up 1.7%, metals and mining, mightier by 1.2%, and materials, better by 0.5%.
ON WALLSTREET
Stocks south of the border closed sharply lower Thursday as traders fretted about whether the U.S. Federal Reserve would raise rates while the economy is too weak.
The Dow Jones industrial average stumbled 232.01 points, or 1.4%, to end the day at 17,477.67, with Wal-Mart and General Electric the only advancers and Travelers Cos. the greatest decliner.
The S&P 500 slumped 29.89 points, or 1.4%, to 2,049.62, falling back into negative territory for the year in intraday trade. Health care and energy fell more than 2% to lead all 10 sectors lower.
The NASDAQ index dropped 85.69 points, or 1.7%, to 5,037.53, as Apple traded more than 1.5% lower.
Investors also awaited Friday's non-farm payrolls report and weighed disappointment over the level of euro zone stimulus after the European Central Bank's decision.
In economic news, initial jobless claims rose to 269,000. ISM non-manufacturing came in at 55.9 versus October's 59.1 read, Dow Jones reported. U.S. factory orders rose 1.5% in October, beating expectations of 1.3%.
Key for the week is November's non-farm payrolls report, due Friday before the opening bell. The data is the final jobs report out before the Fed's December meeting.
In testimony before Congress Thursday morning, Fed Chair Janet Yellen reiterated confidence in the U.S. economic outlook. Her remarks followed a speech Wednesday that reaffirmed the case for the first interest rate hike in nine years as soon as this month, if the data was supportive.
European Central Bank President Mario Draghi said the European Central Bank would extend to at least March 2017 its massive 60-billion-euro- ($63.5-billion U.S.) a-month bond-buying scheme. Hopes of an increase in amount of purchases were disappointed.
Prices for the 10-year Treasury wilted, spiking yields to 2.32% from Wednesday’s 2.18%. Treasury prices and yields move in opposite directions.
Oil prices advanced $1.20 a barrel to $41.14 U.S.
Gold prices shone brighter $8.80 to $1,062.50 U.S. an ounce.
