Equities in Canada’s largest market tumbled to a one-week low on Wednesday as lower oil prices weighed on the resource-linked market, and weaker-than-expected bank earnings dragged down financial issues.
The S&P/TSX Composite Index fought back to within 69.18 points of breakeven by noon to 12,694.26.
The Canadian dollar regained 0.19 cents to 72.68 cents U.S.
The most influential movers on the index were bank stocks after Royal Bank of Canada posted quarterly earnings which fell short of analyst forecasts.
RBC, Canada's second-largest lender by assets, was hurt by weakness in its insurance and capital markets businesses, while it also showed increasing signs of pain from the oil price crash and economic slowdown in Western Canada.
Its shares fell 5.5% to $65.80, and Toronto-Dominion Bank declined 3.8% to $50.20.
The energy group fell as crude oil prices fell after Saudi Arabia ruled out production cuts and an industry report underlined the supply glut.
Natural Resources Ltd fell 2.7% to $26.81, while Suncor Energy was down 0.7% at $32.51.
In contrast, the shares of energy producer Encana Corp surged 20% to $4.98 after the company cut its 2016 capital spending forecast to less than half its 2015 expenditure and said it would lay off 20% of its workforce this year.
Industrials fell, including a 1.9% slide in the shares of Canadian National Railway Co to $77.05.
Gold stocks helped cushion losses for the index, as Barrick Gold Corp jumped 5.1% to $19.58 and Goldcorp rose 5.9% to $22.51.
ON BAYSTREET
The TSX Venture Exchange regained 4.19 points to 536.77
Eight of the 13 TSX subgroups were lower, as metals and mining dove 3.5%, financials were off 2.5%, and industrials slid 0.8%.
The five gainers were led by gold, up 2.9%, health-care gaining 2.5%, and materials up 1.7%.
ON WALLSTREET
Equities stateside traded lower Wednesday, with financials leading declines, as investors eyed oil prices.
The Dow Jones industrial average dropped 117.14 points – way off its lows of the morning -- to 16,314.64, with Boeing and Goldman Sachs contributing the most to declines.
The S&P 500 slumped 11.5 points to 1,909.77. Financials traded about 1.5% lower as the greatest laggard in the S&P 500.
The NASDAQ index tumbled 24.54 points to 4,479.04
The major U.S. averages extended losses slightly after the Markit Flash February report on services PMI came in at 49.8, down sharply from 53.2 in January and a touch below the key 50.0 level.
New home sales for January hit 494,000, below the expected 520,000
Prices for the 10-year Treasury spiked, lowering yields to 1.7% from Tuesday’s 1.74%. Treasury prices and yields move in opposite directions.
Oil prices fell 19 cents a barrel to $31.68 U.S.
Gold prices remained positive $15.75 to $1,242.60 U.S. an ounce.
