Stocks in Canada’s largest market slid on Monday, extending last week’s retreat, as commodity prices fell and wildfires raging through Alberta appeared set to move away from one of the country’s oil-producing regions.
The S&P/TSX Composite Index stumbled 137.63 points, or 1%, to close Monday at 13,563.84 – though its lows of the day.
The Canadian dollar was negative 0.31 cents to 77.16 cents U.S.
Among raw materials producers, Teck Resources faltered $1.55, or 11.5%, to $11.98, while rival First Quantum Minerals slumped $1.33,or 14.3%, to $7.98.
Gold producers also took their lumps, as Yamana Gold Inc. sank 44 cents, or 7.3%, to $5.63, while Kinross Gold went south 46 cents, or 6.4%, to $6.75.
In the energy sector, Suncor dropped 60 cents, or 1.8%, to $33.24, while Baytex Energy swooned 30 cents, or 5%, to $5.76.
In Alberta, wildfires have led to cuts equivalent to about 40% of oil-sands production, based on IHS Energy estimates. The impact of a reduction in output may be muted due to U.S. crude stockpiles holding at the highest level since 1929.
Once fires in Alberta are under control, Morgan Stanley opined the majority of oil sands mining projects can be back to normal production levels in about one week.
On the economic slate, there was disappointment, as housing starts fell by more than expected in April from a month earlier.
Canada Mortgage and Housing Corporation reported that housing starts fell to 191,512 units in April from a downwardly-revised 202,375 units in March.
Forecasters had expected 195,000 starts.
ON BAYSTREET
The TSX Venture Exchange lost 11.52 points, or 1.7%, to 657.42.
All but three of the 13 TSX subgroups were down, as metals and mining moved earthward 10.5%, gold slid 5.5%, materials were down 4.3%
The lone three gainers were real-estate, up 1.2%, while consumer discretionaries improved 0.5%, and consumer staples gained 0.4%.
ON WALLSTREET
U.S. stocks closed mixed in high volume trade Monday, with gains in health care offsetting declines in materials and energy as oil prices fell.
The Dow Jones Industrials scrambled lower 34.72 points to 17,705.91, with Caterpillar leading decliners and Merck the greatest advancer.
The S&P 500 nicked up 1.55 points to 2,058.69. Health care rose more than 1% to lead S&P advancers, followed by consumer staples and utilities.
The NASDAQ Composite Index stayed positive 14.06 points to 4,750.21, helped by gains in Amazon.com, Apple and shares of Alphabet.
Allergan and Mallinckrodt rose more than 6% each to lead health care advancers in afternoon trade.
On Saturday, crude exporter Saudi Arabia appointed Khalid al-Falih, chairman of the state oil giant Saudi Aramco, as its new energy minister, replacing Ali al-Naimi, who had held the post since 1995.
China's crude oil imports rose 7.6% in April from a year ago, according to customs data released Sunday. The demand was driven by strong demand from domestic private refiners, many of which received licenses from Beijing last year to import crude for the first time.
Prices for the 10-year Treasury gained, lowering yields to 1.75% from Friday’s 1.78%. Treasury prices and yields move in opposite directions
Oil prices slid $1.25 a barrel to $43.41 U.S.
Gold prices dumped $26.49 to $1,262.52 U.S. an ounce.
