Equities in Canada’s biggest market fell in morning trade on Monday, weighed down by financial, consumer and industrial stocks in the first session of 2016 as a slump in Chinese shares spooked investors.
The S&P/TSX composite index plummeted 183.86 points, or 1.4%, to greet noon at 12,826.59.
The Canadian dollar fell 0.56 cents to 71.62 cents U.S.
Barrick Gold Corp rose 6.2% to $10.87 and Goldcorp advanced 4.3% to $16.68, while gold futures rose.
China's factory activity contracted for the 10th straight month in December and at a sharper pace than in November, a private survey showed.
Bombardier fell 2.2% to $1.31. The plane maker said it received a firm order from China Express Airlines for 10 jets.
Canadian National Railway fell 3.7% to $74.51.
Convenience store chain Alimentation Couche-Tard fell 3.1% to $59.01 and Restaurant Brands International lost 4.4% to $49.47.
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 forfeited 2.96 points to 522.70
All but two of the 13 TSX subgroups were lower, with metals and mining skidding 5.3%, health-care the worse off by 2%, and industrials down 1.9%.
The two gainers were gold, up 2.4%, and materials, better by 0.2%.
ON WALLSTREET
U.S. stocks traded sharply lower Monday, the first day of trade for the year, weighed by renewed concerns of global economic slowdown and increased tensions in the Middle East. The overnight drop in Chinese stocks that triggered a circuit breaker also pressured sentiment.
The Dow Jones industrial average collapsed 422.34 points, or 2.4%, to pause for lunch at 17,002.69, on pace for its largest percent decline on the first trading day of the year since 1932. DuPont led all member stocks lower.
The Dow also briefly fell below the psychologically key 17,000 level in intraday trade for the first time since October.
The S&P 500 lost 48.07 points, or 2.4%, to 1,995.87, as information technology and financials fell more than 2.5%in morning trade to lead most S&P 500 sectors lower. Energy briefly attempted gains as oil initially tried to bounce.
The NASDAQ index dropped 139.78 points, or 2.8%, to 4,867.63. Apple temporarily fell more than 2% in morning trade.
Tesla and Chinese e-commerce site JD.com fell more than 7.5% in mid-morning trade as the greatest decliners in the NASDAQ
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.
