Experts say the two-year bull market in Canadian stocks has officially ended.
The S&P/TSX composite index hurtled lower 278.59 points, or 2.2%, to close Thursday at 12,448.21, more than 20% below the September 2014 record of 15,657.63. By closing below that high by more than 20%, it meets the definition of a bear market and ends a bull run that began in 2013.
The index has fallen seven consecutive days, the longest losing streak since November.
The Canadian dollar inched back 0.11 cents at 70.93 cents U.S.
Financials took their lumps, as Royal Bank of Canada fell $1.32, or 1.8%, to $70.25, while Toronto-Dominion Bank, lost $1.15, or 2.2%, to $51.03, as financial shares dropped to a four-month low.
Crescent Point Energy Corp. slumped $1.77, or 11.9%, to $13.08, after the oil producer cut its planned capital spending in 2016 by as much as 39% compared with 2015 estimates.
Penn West Petroleum fell 14 cents, or 12.5%, to 98 cents.
Base metals producers joined the retreat, with First Quantum Minerals Ltd. stumbling 39 cents, or 8.2%, to $4.38, and Teck Resources declining 43 cents, or 8.8%, to $4.50, as copper futures fell.
Meanwhile, gold producers have been a haven in the Canadian market with the S&P/TSX Gold Index rallying almost 10%so far this year as the metal climbed above $1,100 U.S. an ounce. Barrick Gold Corp. jumped $1.15, or 10.3%, to $12.34, the highest level since July.
On the economic front, Western University’s IVEY Purchasing Managers Index rolled in this morning, showing a reading of 49.9 for December, compared to 63.6 for November 2015, and 55.4 for December 2014
The index asks purchasing managers whether they bought more for their firms during the month, less, or about the same. Any reading over 50 indicates an expansion; under 50, contraction.
ON BAYSTREET
The TSX Venture Exchange shed 6.62 points, or 1.3%, to 513.75
All but two of the 13 TSX subgroups were down on the day, weighed most by metals and mining, slumping 7.7%, while energy dropped 4.3%, and health-care loosed 4.2%.
The two gainers were gold, spiking 4.8%, and materials, better by 1.5%.
ON WALLSTREET
U.S. stocks closed sharply lower Thursday as China news overnight and low oil prices renewed concerns about global economic growth.
The Dow Jones industrial average collapsed 392.41 points, or 2.3 %, to 16,514.10, with Boeing leading decliners and Wal-Mart the only gainer.
The S&P 500 slouched 44.16 points, or 2.2%, to 1,946.10, with information technology leading all 10 sectors lower.
The NASDAQ index stumbled 146.34 points, or 3%, to 4,689.43. Apple was down more than 3% below $98.00 U.S. a share.
As of afternoon trade, the major U.S. averages were down more than 4.5% each for the week so far, their first trading week of 2016.
In a light day of U.S. economic news, weekly jobless claims came in at 277,000. The December employment report is due Friday morning.
Weighing on markets overnight was news the People's Bank of China set the yuan reference rate at 6.564, its lowest since 2011 and the largest daily change since Aug. 13.
Prices for the 10-year Treasury gained back lost ground, lowering yields to 2.14% from Wednesday’s 2.17%. Treasury prices and yields move in opposite directions.
Oil prices sank 73 cents a barrel to $33.24 U.S.
Gold prices grew $15.08 to $1,108.75 U.S. an ounce.
