Canadian stocks plummeted at Wednesday’s opening, as poor data from China heightened concerns over global growth, while a disappointing German bond sale increased investor uncertainty.
The S&P TSX Composite Index began Wednesday off 206.96 points, or 1.8% to 11,588.93
The Canadian dollar slumped 0.51 cents to 95.80 U.S. cents.
Among Canadian stocks to watch this morning, oil concern Nexen Inc. confirmed its exit from Yemen's Masila oilfield, the troubled Arab country's largest, after its government refused to renew the company's operating licence.
Franco-Nevada Corp., the royalty and metal streaming company said on Tuesday it will raise $340 million through an equity financing, to power acquisitions and working capital.
ON BAYSTREET
The TSX Venture Exchange shaved off 14.82 points to 1,540.30, while the Nasdaq Canada index faded 4.68 points to 382.09.
All 14 Toronto subgroups went south in the first hour of trading. Metals and mining plunged 2.2%, while energy lost 2% and gold slipped 1.8%.
ON WALLSTREET
In New York, stocks headed straight into the red early Wednesday, as euro-zone fears rumbled on and a preliminary report showed that Chinese manufacturing slowed sharply.
The Dow Jones Industrials went down 143.57 points, or 1.3%, to 11,350.20.
The S&P 500 dipped 16.94 points, to 1,171.04, while the Nasdaq Composite staggered 36.89 points to 2,484.39
Stocks have taken a downward turn in recent sessions, as rising bond yields in Italy and Spain continue to shake investor confidence.
The European Commission published a green paper on stability bonds Wednesday, outlining proposals to fix the euro-zone's debt crisis. However, skepticism remains about how effective these plans will be.
Investors are also worried that a slump in Chinese manufacturing could mean that the euro-zone's problems are spreading beyond Europe.
A weak auction of 10-year German debt only added fuel to the fire.
Stocks ended in the red Tuesday amid worries about U.S. economic growth, though losses were trimmed after the International Monetary Fund unveiled a beefed-up lending program to help otherwise healthy countries with short-term financing problems.
John Deere reported full-year earnings that hit a record $2.8 billion U.S., and posted fourth-quarter net income that blew past expectations. Shares of the equipment maker climbed 6%.
Shares of Yingli Green Energy slipped 1%, after the solar energy provider posted a wider third-quarter loss than analysts had been expecting.
Netflix announced Tuesday that it expects to be unprofitable in 2012, saying that it will sell $400 million U.S. in common stock and convertible notes. Shares of the video-streaming subscription service slipped more than 1% in early trading Wednesday.
Bank of America shares slid 1.5%, after hovering near a two-year-low Tuesday, after a report in The Wall Street Journal stated the bank was having difficulty meeting U.S. financial regulatory requirements.
Late Tuesday, the Federal Reserve ordered the top 31 U.S. banks -- with assets of $50 billion U.S. or more -- to participate in stress tests that will simulate another financial crisis.
Tests will simulate a more severe global financial meltdown for six banks with the largest trading operations: Bank of America, Goldman Sachs, Citigroup, JPMorgan Chase, Morgan Stanley and Wells Fargo. Shares of JPMorgan Chase and Citi fell more than 1% in premarket trading.
Economically speaking, the U.S. government released several economic reports Wednesday including jobless claims, personal spending and income, and durable goods.
The number of people filing for initial unemployment benefits rose 2,000 in the latest week to 393,000. Analysts surveyed by Briefing.com expected 391,000 jobless claims for the week ending November 19.
Personal income climbed 0.4% in October, while personal spending grew 0.1%. Analysts had expected both measures to rise 0.3%.
Meanwhile, orders of durable goods slipped 0.7% in October -- slightly less than the 0.9% drop economists had been expecting.
The price on the benchmark 10-year U.S. Treasury edged slightly lower, pushing the yield up to 1.95% from 1.94% late Tuesday. Treasury prices and yields move in opposite directions.
Oil for January delivery slipped $1.81 to $96.20 U.S. a barrel.
Gold futures for December delivery fell $10.20 to $1,692.20 U.S. an ounce.
