Stocks in Toronto fell further midday Thursday, hitting a three-week low as a string of disappointing corporate earnings reports added to broad investor unease about the global economy.
The S&P/TSX composite index tumbled 149.66 points, or 1.2%, to greet noon at 12,036.26
The most influential weight on the index was Manulife Financial, which slumped 7.3% to $16.05 after the country's largest insurer missed market estimates for the fourth quarter and said it would be difficult to achieve its core earnings target for 2016.
The heavyweight financials group fell to its lowest level in more than two years, with Royal Bank of Canada down 1.7% to $65.08 and Toronto-Dominion Bank off 1.7% at $48.86.
Telus declined 3.4% to $38.49 after the telecom company reported a fall in quarterly profit, hurt by increased competition and weaker demand for its wireless services, which the company blamed in part on broader economic weakness, particularly in Alberta.
Teck Resources declined 5.2% to $5.16. Cost-cutting helped the diversified miner report a surprise adjusted profit but it also recorded an impairment charge as it slashed its workforce.
The country's second-largest pipeline company, TransCanada Corp, barely advanced despite reporting a better-than-expected quarterly profit and raising its dividend at a time when most energy companies are scaling back shareholder payouts.
Gold miners benefited as the price of bullion jumped to its highest in a year as fears about financial instability, a lower dollar and U.S. Treasury yields persuaded investors to seek refuge in the precious metal.
Barrick Gold jumped 6.2% to $17.10 and Goldcorp rose 4.4% to $21.20.
Kinross Gold Corp surged 14.8% to $4.11 after forecasting record output and lower costs this year.
In the economic docket, Statistics Canada reported that its new housing price index edged up 0.1% in December, following a 0.2% increase in November.
The agency went on to say the advance was led by higher new home prices in Ontario and British Columbia. December marked the second consecutive month of slowing price gains.
ON BAYSTREET
The TSX Venture Exchange advanced 2.51 points to 507.82
All but two of the 13 TSX subgroups were lower, with health-care stocks falling 2.9%, while financials and industrials each slid 2.4%.
The two gainers were gold, sprinting 6.8%, and materials, bolting 4.4% higher.
ON WALLSTREET
U.S. equities fell sharply Thursday as investors digested a massive global selloff and oil prices fell further.
The Dow Jones industrial average swooned 351.22 points, or 2.2%, to 15,563.01, with Boeing leading decliners and Cisco Systems and Walt Disney the only advancers.
The S&P 500 subtracted 29.36 points, or 1.6%, to 1,822.50, as financial fell 3%
The NASDAQ index capsized 56.06 points, or 1.3%, to 4,227.53, as biotechnology stocks and several technology stocks fell.
European bourses tumbled as Deutsche Bank dropped 5% and UBS fell 4.6%.
In the U.S., companies such as CBS, KKR, FireEye, AIG, and Activision Blizzard all report earnings today.
On the data front, U.S. weekly jobless claims came in at 269,000, below estimates.
Investors will also keep an eye on Federal Reserve Chair Janet Yellen, who is scheduled to testify for a second day in front of Congress.
Prices for the 10-year Treasury gained sharply, lowering yields to 1.60% from Wednesday’s 1.69%. Treasury prices and yields move in opposite directions.
Oil prices moved lower 72 cents a barrel to $26.73 U.S.
Gold prices leaped $38.53 to $1,255.65 U.S. an ounce.
