NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

CANADA STOCKS-TSX slides 1 percent, beaten down by China, commodities rout

Published 2015-07-27, 11:41 a/m
CANADA STOCKS-TSX slides 1 percent, beaten down by China, commodities rout
GC
-
HG
-
LCO
-
CL
-
GSPTSE
-
TD
-
SU
-
ENB
-
RY
-
QSR
-

* TSX down 141.2 points, or 1 percent, to 14,045.04
* All 10 of the TSX's main groups fell

By Solarina Ho
TORONTO, July 27 (Reuters) - Canada's main stock index fell
on Monday, in a broad rout that tracked global equities, which
fell on the heels of a more than 8 percent plunge in Chinese
stocks.
The declines were led by the heavily weighted energy and
financial sectors, which were down 1.7 percent and 1.3 percent,
respectively.
"The energy sector is just so bad, it looks like the impact
of lower energy prices ... the hit to production and investment
seems to be quite significant," said John Johnston, chief
strategist at Davis-Rea.
"The manufacturing sector globally is still slowing and
that's really crushing commodities. That's weighing on a whole
range of stock markets."
Among oil and gas companies, Enbridge Inc ENB.TO slid 1.62
percent to C$54.52, while Suncor Energy Inc SU.TO retreated
1.27 percent to C$32.66.
Toronto Dominion Bank TD.TO led the fall in financials
with a 1.33 percent slide to C$51.17, while Royal Bank of Canada
RY.TO declined 1.2 percent to C$73.67.
At 11:23 a.m. EDT (1523 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE fell 141.2 points, or 1
percent, to 14,045.04.
All 10 of the index's main sectors were mired in the red,
with declining shares outnumbered advancing ones on the TSX by
214 to 34, for a 6.29-to-1 ratio on the downside. The index was
posting no new 52-week highs and 49 new lows.
The materials group, home to mining firms and another major
index mover, retreated 1.3 percent.
Chinese stocks saw its biggest selloff in eight years, which
stoked concerns over the global impact of slowing growth in the
world's second-largest economy. A dramatic 8.5 percent fall in
Shanghai rattled markets around the world and sent commodity
prices falling.
"I'm somewhat kind of pessimistic on China. I certainly
don't see a crash imminent, but the economy is slower than I
would've thought," said Johnston, who expressed concerned that a
global recession could potentially be unfolding.
U.S. crude CLc1 prices were down 1.5 percent to $47.42 a
barrel, while Brent crude LCOc1 lost 2.0 percent to
$53.52. O/R
Meanwhile, gold futures GCc1 rose 0.9 percent to $1,095.4
an ounce, as prices edged closer to 5-1/2 year lows. Copper
prices CMCU3 , which hit six-year lows, tumbled 1.1 percent to
$5,206.5 a tonne. GOL/ MET/L
Restaurant Brand International QSR.TO , formed out of
Burger King's takeover of Canadian coffee and doughnut chain Tim
Hortons, was among the few gainers. Shares rose 3.5 percent to
C$54.03, after it reported a better-than-expected quarterly
profit due to strong sales. ID:nL3N10740Y

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.