Equities in Canada’s largest centre fell hard on Monday, as weakness in global stocks at the start of the New Year following disappointing Chinese data and a spike in Middle East tensions.
The S&P/TSX composite index plummeted 182.82 points, or 1%, to start the year’s first session at 12,827.13.
The Canadian dollar inched down 0.17 cents to 72.01 cents U.S.
Canadian Oil Sands urged its shareholders to let Suncor Energy's unsolicited bid lapse, emphasizing that the company could remain independent.
Canadian Oil Sands shares dipped six cents to $8.21. Suncor shares lost nine cents to $35.63.
Billionaire investor William Ackman said on Thursday he sold about five million shares in drug company Valeant International in order to generate a tax loss as investors in his Pershing Square Capital Management face the biggest loss in the company's history.
Valeant shares deducted $1.88, or 1.3%, in price to $138.68.
CIBC raised the rating on CAE Inc. to outperform from sector performer. CAE shares fell 16 cents, or 1%, to $15.19.
BMO cut the target price on Canadian Pacific Railway to $210 from $230 with an outperform rating. CP shares were cheaper by $5.57, or 3.2%, to $171.16.
BMO raised the rating on Dollarama to outperform from market perform. Dollarama shares lost $2.33, or 2.9%, to $77.61.
Economically speaking, RBC reported this morning that its Canadian Manufacturing Purchasing Managers’ Index registered a seasonally-adjusted 47.5 in December, down from 48.6 in November and below the neutral 50.0 threshold for the fifth consecutive month, the sharpest deterioration since October 2010
ON BAYSTREET
The TSX Venture Exchange lost 0.41 points to 525.25
All but three of the 13 TSX subgroups were lower, with industrials and metals and mining each surrendering 2.9%, while health-care was 2.4% to the bad.
The three gainers proved to be gold, soaring 4,3%, materials, up 1.6%, and energy, up 0.2%.
ON WALLSTREET
U.S. stocks traded sharply lower Monday, the first day of trade for 2016, weighed by renewed concerns of negative impact from slowdown in China and increased tensions in the Middle East.
The Dow Jones industrial average collapsed 367.86 points, or 2.1%, to start the year’s first session at 17,057.17, with DuPont leading all member stocks lower.
The S&P 500 lost 41.64 points, or 2%, to 2,002.30, as information technology and financials briefly fell more than 2.5% in morning trade to lead most S&P 500 sectors lower.
The NASDAQ index dropped 133.63 points, or 2.7%, to 4,873.79. Apple fell more than 2% in morning trade.
In U.S. economic news, the December U.S. Markit manufacturing PMI was 51.2. The December ISM Manufacturing Index showed 48.2.
Construction spending fell 0.4% in November.
Overseas, Chinese stocks plunged after Caixin manufacturing Purchasing Managers Index showed continued contraction in that area of the economy.
Prices for the 10-year Treasury rose sharply, lowering yields to 2.20% from Thursday’s 2.27%. Treasury prices and yields move in opposite directions.
Oil prices soared 87 cents a barrel to $37.91 U.S.
Gold prices spiked $21.55 to $1,082.65 U.S. an ounce.
