Stocks in Canada’s largest centre fell hard by noon Tuesday, with energy stocks slumping as fears of an oil supply glut haunted investors, while banks also weighed on sentiment.
The S&P/TSX Composite dropped 138.29 points, or 1%, to greet noon at 14,444.45
The Canadian dollar gained 0.21 cents to 76.4 cents U.S.
Markets in Canada were closed Monday for the Civic Holiday
The most influential drags included major oil and gas producer Suncor Energy Inc, which fell 2.8% to $34.15, and pipeline operator Enbridge, which lost 1.7% to $52.81. Cenovus Energy declined 3.4% to $18.05.
The energy group retreated and the financials group slipped, echoing falls in Europe. The two sectors combined account for more than half the index's weight.
Royal Bank of Canada fell 1.2% to $78.63, Toronto-Dominion Bank declined 1.1% to $56.28 and Bank of Nova Scotia was off 1.4% at $65.39.
Among gold plays, influential gainers included Barrick Gold, which rose 3.9% to $29.63, and Franco Nevada Corp , which advanced 2.4% to $103.12.
Valeant Pharmaceuticals International Inc shed 6.4% to $27.22, catching up to its U.S.-listed share losses on Monday after pharmacy benefit manager Express Scripts said it would exclude a Valeant treatment from insurance coverage.
Silver Wheaton advanced 5.4% to $38.42 after signing a $800-million deal to acquire more gold from a copper mine owned by Brazil's Vale.
The economic calendar is a scant one Tuesday, with the newly-renamed Markit Canadian Manufacturing PMI at a seasonally-adjusted 51.9 in July of 2016, up from 51.8 in June.
ON BAYSTREET
The TSX Venture Exchange gained 10.42 points to 806.59
All but two of the 13 subgroups were lower as health-care stocks swooned 4.1%, energy dwindled 3.2%, and industrials weakened 1.5%.
The two gainers were gold, up 3.2%, while materials advanced 2.1%.
ON WALLSTREET
U.S. equities traded lower Tuesday, following global stock markets lower, particularly in Japan and Europe.
The Dow Jones Industrials stumbled 108.03 points to 18,296.48, putting it on track for its first seven-day losing streak since August of last year. Apple and Goldman Sachs contributed the most losses within the Dow.
The S&P 500 slipped 17.22 points to 2,153.62, as consumer discretionary and industrials lagged.
The NASDAQ Composite descended 56.93 points, or 1.1%, to 5,127.27, and was on track to snap a five-day winning streak.
On the economic data front, personal income rose 0.2% in June, just below expectations, while personal consumer spending for the same month advanced 0.4%, beating estimates. July auto sales data is also due throughout the day Tuesday.
Investors will digest the latest employment statistics on Friday, when Washington releases the July non-farm payrolls report
Prices for the 10-year Treasury regained strength, lowering yields to 1.53% from Monday’s 1.55%. Treasury prices and yields move in opposite directions.
Oil prices lost 54 cents a barrel to $39.52 U.S.
Gold prices gained $13.00 to $1,372.60 U.S. an ounce.
