A record slide for the Canadian dollar, plunging bond yields and billions wiped out in the stock markets had investors ecstatic at the advent of the weekend.
The S&P/TSX composite index came off its intraday lows, but still receded 262.57 points, or 2.1%, to conclude the day and the week at 12,073.46, undoing Thursday’s rally and resuming a selloff which has pulled Canada into a bear market. The market has slid 7.2% this year and plunged about 23% from its September 2014 record.
The Canadian dollar hesitated 0.76 cents to 68.83 cents U.S., an 11th-consecutive loss, and a 13-year low against the U.S. dollar, fueling speculation the Bank of Canada will cut its benchmark interest rate back to its 2009 financial crisis level.
Energy stocks particularly took it on the chin, as oil fell below $30.00 U.S. per barrel. EnCana is still feeling around for the lumps, falling 54 cents, or 9.1%, to $5.38, and TransCanada Corporation faltered $4.84, or 2.2%, to $42.82.
Financials skidded hard, too, as Manulife Financial decreased 78 cents, or 4.1%, to $18.04, while Royal Bank of Canada skidded $2.52, or 3.6%, to $67.05.
Mining stocks weakened, as Canadian Natural Resources dipped $1.46, or 5.6%, to $24.44.
Gold gave investors something of a beacon, albeit a lonesome one, as Barrick Gold hiked 59 cents, or 5.4% to $11.49, while Goldcorp climbed two cents to $15.01.
On the economic slate, the Canadian Real Estate Association reported that national home sales edged back by 0.6% from November to December.
CREA also stated that actual (not seasonally-adjusted) activity was up 10% from December 2014. The association concludes that the number of newly listed homes rose 2.2% from November to December.
ON BAYSTREET
The TSX Venture Exchange dropped 6.41 points Friday, or 1.3%. to 488.96.
All but one of the 13 TSX subgroups were lower, energy was down 3.6%, financials sliding 2.8%, metals and mining plummeted 2.5%
Only gold stood out against the negative tide, taking on 1.2%.
ON WALLSTREET
U.S. stocks closed sharply lower Friday ahead of a long weekend and the onslaught of earnings season, after a slew of disappointing U.S. data, a plunge in oil to below $30 U.S. a barrel, and a selloff in Chinese stocks added to mounting concerns about slowing global growth.
The Dow Jones industrial average plunged 390.97 points, or 2.4%, to conclude a disastrous week at 15,988.08, with Intel leading all member stocks lower.
The S&P 500 slid 42.71 points, or 2.2%, to 1,879.13, the index’s lowest since last October. Financials and energy dipping more than 4% each to lead all S&P 500 sectors lower.
The NASDAQ index gave back 126.58 points, or 2.7%, to 4,488.42, its lowest level in 14 months.
Friday also marked an options expiration day that could have contributed further to the volatility.
U.S. stock markets are closed Monday for Martin Luther King, Jr. Day.
On the economic front, retail sales stateside declined 0.1% in December. Ex-autos, retail sales also fell 0.1%.
The January Empire manufacturing was minus 19.4.
Wholesale inflation, in the form of the producer price index fell 0.2% in December after rising 0.3% in November.
Industrial production for December fell 0.4%, while capacity utilization was 76.5%.
January U.S. Michigan preliminary Consumer Sentiment was 93.3. November U.S. business inventories fell 0.2%.
Prices for the 10-year Treasury bolted higher, lowering yields to 2.03% from Thursday’s 2.09%. Treasury prices and yields move in opposite directions.
Oil prices hurtled earthward $1.54 a barrel to $29.66 U.S.
Gold prices stayed positive $10.11 to $1,088.49 U.S. an ounce.
