Stocks in Canada’s biggest market fell on Monday as weak data from China and a drop in crude oil prices weighed on the resource-linked market.
The S&P/TSX composite index dwindled 211.33 points, or 1.7%, to kick off the year’s shortest month at 12,610.80.
The Canadian dollar docked 0.4 cents to 71.19 cents U.S.
Royal Nickel Corp, capitalizing on discount asset prices as commodity markets swoon, announced two cash-and-stock acquisitions that transform the mine developer into a cash-generating nickel, copper and gold producer.
Royal Nickel shares moved up two cents, or 12.5%, to open at 18 cents.
CIBC raised the target price to on TransCanada Corp. to $57.00 from $56.00. TransCanada shares capsized $1.12, or 2.3%, to $47.53,
China's manufacturing activity contracted at its fastest pace in almost three and a half years in January, suggesting the world's second-largest economy was off to a weak start in 2016.
Manufacturing growth also slowed in the euro-zone at the start of 2016.
On the economic beat, the seasonally-adjusted RBC Canadian Manufacturing Purchasing Managers' Index registered 49.3 last month, up from December’s 47.5, but still below the 50 threshold for the sixth straight month.
ON BAYSTREET
The TSX Venture Exchange poked up 1.74 points, to 501.26
All but two of the 13 TSX subgroups were negative in the first hour, as energy sagged 3.9%, metals and mining dropped 3.3%, and industrials lurched lower 2.7%
The two gainers were gold, up 3%, and materials, ahead 0.7%.
ON WALLSTREET
U.S. stocks traded lower Monday, weighed by declines in oil prices and continued softness in manufacturing data.
The Dow Jones industrial average let go of 148.44 points to 16,317.86, with 3M, Exxon Mobil and Chevron contributing the most to declines.
The S&P 500 pointed downward 14.71 points to 1,925.53, as energy declined almost 3% in morning trade as the greatest laggard.
The NASDAQ index slumped 38.54 points to 4,575.41
Monday brings more major earnings reports, including Google's parent company Alphabet after the close.
In morning quarterly reports, Aetna earned an adjusted $1.37 U.S. per share for its latest quarter, 16 cents above estimates, with revenue also beating forecasts. The health insurer was helped by improved membership numbers and margins in its Medicare business.
However, the company is also projecting full-year 2016 earnings of $7.75 U.S. per share, below estimates of $8.05 U.S. a share.
Cardinal Health posted earnings that beat on both the top and bottom line, helped by factors such as growth in its customer base and solid fundamentals.
Economically speaking, Markit's U.S. Manufacturing PMI for January came in at 52.4, a touch below the flash read but above December's final 51.2 print.
Earlier, personal income for December showed a 0.3% increase. Consumer spending was unchanged for the month, while November spending was revised higher to 0.5%.
Excluding food and energy, prices were unchanged after nicking up 0.2% in November.
Oil fell, under pressure from weak economic data from China and news that an OPEC source played down talk of an emergency meeting.
Overnight, China's official manufacturing Purchasing Managers’ Index for January fell to 49.4, the weakest read since August 2012 and marking a six-straight month of contraction. The official non-manufacturing PMI fell to 53.5 in January from 54.4 the prior month.
Prices for the 10-year Treasury lost ground, raising yields to 1.95% from Friday’s 1.93%. Treasury prices and yields move in opposite directions.
Oil prices sank $1.10 a barrel to $32.52 U.S.
Gold prices leaped $8.89 to $1,127.10 U.S. an ounce.
