Equities in Canada’s biggest market slumped 1% on Friday in a broad retreat led by sharp losses for resource stocks as oil and gold prices fell, with a North Korean nuclear blast and hawkish talk from a U.S. Federal Reserve official weighing.
The S&P/TSX Composite surrendered 164.67 points, or 1.1%, to greet noon at 14,638.59
The Canadian dollar dropped 0.54 cents at 76.76 cents U.S.
One of the most influential movers on the index was Crescent Point Energy Corp, which fell 8.2% to $18.59 after announcing a plan to raise $650 million by issuing more shares and a $600 million hike in its capital spending plans.
The energy group retreated as oil prices fell more than 2%
Enbridge Inc pulled back 1.8% to $58.04 following days of sharp gains after announcing a major takeover.
The materials group, which includes precious and base metals miners and fertilizer companies, lost sharply.
Barrick Gold lost 2.9% to $23.15, as the price of gold slipped, while Goldcorp Inc declined 2.1% to $20.92. Sources say Goldcorp has hired Bank of Nova Scotia to help it sell a gold and silver mine in Mexico.
The financials group slipped, with Manulife Financial Corp advancing 1.6 percent to $18.21, after the CEO of the country's biggest life insurer said on Thursday that Manulife would consider share buybacks and expected a pause in acquisitions.
North Korea conducted its fifth and biggest nuclear test on Friday and said it had mastered the ability to mount a warhead on a ballistic missile.
On the domestic economic front, Statistics Canada reported that the economy created 26,000 jobs during August. The unemployment rate rose 0.1 percentage points to 7.0%, as more people participated in the labour market.
Moreover, Canada Mortgage and Housing Corporation revealed that housing starts declined to 195,640 units in August compared to 201,379 in July.
ON BAYSTREET
The TSX Venture Exchange surrendered 5.97 points to 819.63
All 12 TSX subgroups were negative during the morning, as health-care slid 2.2%, while gold and energy faltered 2.1% each.
ON WALLSTREET
U.S. equities traded lower on Friday as concerns the Federal Reserve might raise interest rates this month loomed following a speech made by a Fed official, while eyeing falling oil prices.
The Dow Jones Industrials hurtled lower 234.49 points, or 1.3%, to 18,245.42, with Caterpillar leading all components lower.
The S&P 500 skidded 29.96 points, or 1.4%, to 2,151.34, with utilities shedding more than 2%.
The NASDAQ Composite tumbled 77.59 points, or 1.5%, to 5,181.89
Boston Fed President Eric Rosengren said in a speech low interest rates are increasing the chance of overheating the U.S. economy. He also said gradually tightening monetary policy is appropriate to maintaining full employment.
Wholesale trade data for July showed inventories remained unchanged, while sales fell 0.4%.
Prices for the 10-year Treasury fell sharply, boosting yields to 1.67% from Thursday’s 1.61%. Treasury prices and yields move in opposite directions.
Oil prices moved lower $1.20 at $46.42 U.S. a barrel
Gold prices lost $4.10 at $1,337.50 U.S. an ounce.
