Energy’s drag on Canadian stocks showed no signs of abating on Monday as the nation’s benchmark equity gauge slumped a ninth consecutive day, the longest losing streak since 2002.
The S&P/TSX composite index dropped 126.2 points, or 1%, to end the day at 12,319.25, running its current slump to nine straight sessions.
During this slump, the index has surrendered 7.4% of its previous strength.
The Canadian dollar settled 0.25 cents to 70.31 cents U.S.
Energy producers sank as Suncor Energy Inc. fell $1.33, or 4%, to $31.92, its lowest since July, after extending its hostile offer for Canadian Oil Sands Ltd. Canadian Oil Sands was down 24 cents, or 3.2%, to $7.23. Suncor Chief Executive Officer Steve Williams said in a statement he was "encouraged" by the number of shares tendered to the deal.
The S&P/TSX Gold Index lost as the price of the metal swung between gains and losses after posting the best week since August. Gold producers had rallied at the start of the year as investors sought a haven from the market turmoil in China. Barrick Gold Corp. lost 32 cents, or 2.7%, to $11.60.
The materials group, which includes precious and base metals miners and fertilizer companies, lost ground as well, as copper prices hit their lowest since 2009. First Quantum Minerals Ltd declined 40 cents, or 9.4%, to $3.84.
On the economic front, Canada Mortgage and Housing Corporation reported that the seasonally-adjusted annualized rate of housing starts fell to 172,965 units in December from an upwardly revised 212,028 units in November, and way below the forecast 200,000 starts.
ON BAYSTREET
The TSX Venture Exchange slid 7.35 points to 512.02
All but three of the 13 TSX subgroups were lower, as metals and mining plunged 7.5%, while health-care skidded 4.9%, and materials moved lower by 3.6%.
The three gainers were telecoms, up 0.6%, utilities, picking up 0.4%, and real-estate, progressing 0.2%.
ON WALLSTREET
U.S stocks closed mixed Monday, stabilizing after their worst week since 2011, as declines in commodity prices weighed.
The Dow Jones industrial average was higher 52.12 points on the day to 16,398.57, with Cisco leading advancers and DuPont the greatest laggard.
The S&P 500 eked up 3.47 points to 1,925.5. Energy held about 2% lower in afternoon trade to lead S&P 500 sector decliners.
Materials fell more than 1.5% as one of the greatest decliners in the S&P 500 as Freeport-McMoRan held more than 20% lower in afternoon trade. Copper traded more than 2% lower to hit $1.97 U.S., its lowest since April 2009.
The NASDAQ index was negative 5.64 points to 4,637.99, its eighth straight negative session.
The sharp decline in Freeport came amid news Arch Coal filed for Chapter 11 bankruptcy protection, as part of a restructuring agreement reached with lenders who hold more than $4.5 billion U.S. of the coal mining company's debt.
Apple gained more than 1.5% in afternoon trade after news the firm's Apple Music service surpassed 10 million subscribers. Separately, Mizuho upgraded the stock to buy from neutral.
Alcoa is scheduled to report earnings after the bell, ahead of major financial firms' results due later in the week.
U.S. stocks closed sharply lower Friday, ending the first trading week of the year with losses of nearly 6% or more, their worst week since 2011. The Dow and S&P 500 had their worst start to a year in history.
Prices for the 10-year Treasury fell, raising yields to 2.17% from Friday’s 2.13%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.82 a barrel to $31.64 U.S.
Gold prices gave back $8.88 to $1,095.27 U.S. an ounce.
