Equities in Toronto fell on Thursday as financial and energy stocks dragged due to lower oil prices and a dim economic outlook as mounting risk that Britain will leave the European Union weighed on global stock markets.
The S&P/TSX Composite slumped 60.39 points to greet noon at 13,863.06, off its lows of the morning. The index has fallen more than 4% since peaking this month at a 10-month high.
The Canadian dollar tumbled 0.72 cents to 76.73 cents U.S.
The Bank of Canada said economic growth likely stalled in this year’s second quarter due to the impact of Alberta wildfires, while slumping investment spending plans in the energy sector and the possibility that households will suddenly curb their spending due to high debt levels also present risks.
The most influential stocks in morning trade included the country's largest bank, Royal Bank of Canada, which fell 1.1% to $76.16, and Canadian National Railway, which declined 1.6% to $73.80.
The railway's chief executive told the Globe and Mail that it may cut spending by as much as $400 million next year.
Canadian Natural Resources declined 0.2% to $37.02. The oil producer sharply raised its cash-flow forecast for the year on Wednesday as it gains from a rally in crude oil prices.
Among gold issues, Barrick Gold advanced 4.3% to $27.65 and Goldcorp to add 3.4% to $24.35.
Economically speaking, Statistics Canada reported foreign investment in Canadian securities amounted to $15.5 billion in April. Meanwhile, Canadian investors acquired $4.7 billion of foreign securities, mainly debt instruments.
ON BAYSTREET
The TSX Venture Exchange inched up 1.54 points to 715.55
All but three of the 13 TSX subgroups were on the negative side, as metals and mining sagged 2.3%, health-care stocks were ailing 1.8%, and energy failed 1.5%.
The three gainers were gold, shining 2.5% brighter, materials, up 1.3%, and telecoms, eking up 0.02%.
ON WALLSTREET
U.S. stocks traded lower Thursday, amid declines in oil prices, as concerns about next week's Brexit vote and effectiveness of central bank policy weighed.
The Dow Jones Industrials made some headway from a triple-digit slide to begin the day, but remained negative 80.81 points to pause for noon at 17,559.36. Boeing contributed the most to declines in late-morning trade.
The S&P 500 dropped 13.27 points at 2,058.23. Utilities led S&P 500 advancers, while energy held more than 1% lower as the greatest decliner in late-morning trade.
The NASDAQ surrendered 43.12 points to 4,791.81
Economically speaking, The National Association of Home Builders said its survey of builder sentiment rose two points in June to 60.
Prices for the 10-year Treasury gained, lowering yields to 1.56% from Wednesday’s 1.58%. Treasury prices and yields move in opposite directions.
Oil prices dove $1.72 a barrel to $46.29 U.S.
Gold prices perked $20.80 to $1,309.10 U.S. an ounce.
