Slumping energy stocks pushed equities in Toronto sharply lower on Monday as oil prices fell to their lowest in almost seven years following OPEC's decision to keep crude production high, while slips in other commodity prices also weighed.
The S&P/TSX composite index took a header of 292.8 points, or 2.2%, to stumble into noon at 13,065.97, its lowest level since Nov. 16.
The Canadian dollar collapsed 0.84 cents to 74 cents U.S.
Nine of the 13 most influential weights on the index were energy stocks, including Suncor Energy's 2.9% fall to $34.97, and Canadian Natural Resources, which declined 4.3% to $29.38.
Oil prices fell to their lowest in nearly seven years after OPEC's meeting ended on Friday in disagreement over production cuts and without reference to an output ceiling, while a stronger U.S. dollar made it more expensive to hold crude positions.
HudBay Minerals stock fell 7.3% to $5.68 after its chief executive was named to replace Goldcorp's CEO after he retires next year. Goldcorp stock slipped 1.5% to $16.78.
ON BAYSTREET
The TSX Venture Exchange slumped 7.98 points, or 1.5%, to 509.15.
All but one of the 13 TSX subgroups were lower by noon, most notably metals and mining, suffering 7.4%, energy, trailing 5.7%, and materials, off 2.1%
Only health-care held out against the negative tide, up 0.2%.
ON WALLSTREET
U.S. stocks declined Monday as oil fell to trade near lows for the year.
The Dow Jones industrial average faltered 151.42 points, to pause for lunch at 17,696.21, after a gain of more than 360 points on Friday.
Chevron and Exxon Mobil weighed. The index fell back into negative territory for the year in intraday trade.
The S&P 500 shed 15.93 points to 2,075.76. Natural gas companies led sector decliners in morning trade as natural gas fell more than 4% to hit two-week lows.
The NASDAQ index swooned 38.66 points to 5,103.61
In individual stock news, Chipotle Mexican Grill fell more than 4.5% in intraday trade after the company on Friday issued a fourth-quarter warning and said its sales have been hammered due to an E. coli outbreak.
Keurig Green Mountain surged 73% to trade just below $90.00 U.S. a share after the firm said it has agreed to be taken private by an investor group led by JAB Holding for $92.00 U.S. a share in cash. Trade volume was more than quadruple its 30-day average.
General Electric traded more than 0.5% lower after it deal to sell its appliance business to Swedish appliance maker Electrolux fell through, Reuters reported. The deal, which had been announced last year, would have been Electrolux's largest acquisition ever.
The decline in oil prices came after the Organization of the Petroleum Exporting Countries failed on Friday to agree on a production curb to stem sliding prices and a stronger dollar made holding crude positions more expensive.
Prices for the 10-year Treasury gained, lowering yields to 2.22% from Friday’s 2.28%. Treasury prices and yields move in opposite directions.
Oil prices ditched $1.84 a barrel to $38.13 U.S.
Gold prices demurred $9.80 to $1,076.64 U.S. an ounce.
