Stocks on this side of the border fell to a fresh two-and-a-half-year low as a deepening oil rout weighed on the commodity-linked market.
The S&P/TSX composite index slumped 229.71, or 1.9%, to open Wednesday at 11,772.53
The Canadian dollar descended 0.23 cents to 68.37 cents U.S.
A legal protest by the company over a meeting among big U.S. railroads about mergers in their industry has highlighted maneuvering in the sector to cope with a rapid downturn and possible consolidation.
Canadian Pacific Railway on Tuesday asked the U.S. Justice Department to look into statements by U.S. railroads, in the wake of the meeting, about "working closely with each other to block" its bid for Norfolk Southern Corp.
CP shares gave back $4.41, or 2.9%, to $150.57.
Husky Energy cut $800 million from its 2016 capital budget and slashed production guidance by 15,000 barrels of oil equivalent per day on Tuesday in the latest sign that Canadian producers are scrambling to cope with low oil prices. The company also scrapped its fourth-quarter dividend, just a few months after surprising investors by switching to a stock dividend from cash payments.
Husky shares dipped $1.47, or 11.1%, to $11.73.
BMO cut the target price on Alamos Gold Inc to $6.50 from $7.50 as the ramp-up of Young-Davidson site appears delayed compared to previous assumption of an 8ktpd rate by the end of 2016.
Alamos shares dipped three cents to $3.49.
National Bank Financial cut the target price on Pason Systems to $19.00 from $22.00 based on close correlation with the rig count and valuation on updated estimates, which is apt to trend sideways to lower in the near term.
Pason shares collapsed $1.43, or 8.9%, to $14.58.
On the economic beat, Statistics Canada reported that manufacturing sales in November increased 1.0% to $50.8 billion, led by higher motor vehicle sales in Ontario.
The agency also said wholesale trade rose for the first time in five months, up 1.8% to $55.9 billion in November.
StatsCan added that sales were higher in four of seven subsectors, led by motor vehicle and parts. Excluding this subsector, wholesale sales were up 1.2% in November.
ON BAYSTREET
The TSX Venture Exchange slid 4.17 points to 476.20.
All but two of the 13 TSX subgroups were negative to start out, with metals and mining going south 4.3%, energy off 3.4%, and health-care ailing 2.7%.
Gold soared 3%, while its brethren in materials inched up 0.02%, the only two gainers.
ON WALLSTREET
U.S. stocks traded more than 1.5% lower Wednesday as further decline in oil prices pressured global equities.
The Dow Jones industrial average collapsed 291.27 points, or 1.8%, to 15,724.75, with IBM contributing the most to declines
The S&P 500 slid 28.78 points, or 1.5%, to 1,852.55, with energy leading all 10 sectors lower.
The NASDAQ index plummeted 94.5 points, or 2.2%, to 4,382.45.
Media reports more than 1,000 NYSE-listed stocks hit 52-week lows in the first 20 minutes of trading, the most since Aug. 24.
In economic news, the December U.S. CPI showed a 0.1% decline. Ex-food and energy, the index rose 0.1% after rising 0.2 percent for three straight months, according to Reuters. In the 12 months through December, this so-called core CPI rose 2.1%, the largest gain since July 2012, after climbing 2% in November.
Building Permits fell 3.9% in December. Housing Starts fell 2.5% but the seasonally adjusted annual pace remained above one million.
Prices for the 10-year Treasury spiked, lowering yields to 1.98% from Tuesday’s 2.05%. Treasury prices and yields move in opposite directions.
Oil prices lost 63 cents a barrel to $27.83 U.S.
Gold prices jumped $13.75 to $1,101.16 U.S. an ounce.
