Toronto, New York markets down amid drop in oil prices

TORONTO -- The month of February began on a sour note for North American stock markets amid a sharp drop in oil prices and disappointing reports on manufacturing at home and abroad.

See Full Article

In mid-afternoon trading Monday, the Toronto Stock Exchange's S&P/TSX composite index was down 188.28 points at 12,633.85, reversing direction on a big rally that closed out trading last week.

New York markets also contracted, but not nearly as much, with the Dow Jones industrial average losing 84.33 points to 16,381.97. The S&P 500 gave back 8.47 points to 1,931.77 and the Nasdaq slipped 14.44 points to 4599.52.

In commodities, the March contract for benchmark crude oil was down $1.95 at US$31.67 a barrel and the energy sector was the biggest decliner on the TSX, off 4.44 per cent.

However, the usually oil-sensitive Canadian dollar managed to continue its recent buoyancy, rising 0.24 of a U.S. cent to 71.64 cents US.

Elsewhere in commodities, the March contract for natural gas plummeted 15 cents to US$2.15 per mmBtu, while April gold was up $11.20 at US$1.127.60 an ounce and March copper lost a penny to US$2.06 a pound.

Overseas markets were also mostly negative after a survey of China's manufacturing purchasing managers fell to its lowest level in more than three years, a possible sign of further weakness in the world's second-largest economy.

"There are precious few indicators that point to a recovery within China and this continues to spell bad news for the global economy which has been hugely reliant upon Chinese demand," said Joshua Mahony, a market analyst at IG.

Ryan Larson, head of U.S. equity trading at RBC Global Asset Management, said that with the price of oil down sharply it wasn't surprising to see the broader U.S. market following suit.

"And you've got China and emerging market slowdown worries again. It's more of the same of what caused the market to sell off in January," he said.

Meanwhile, a report on U.S. manufacturing by the Institute for Supply Management came in at 48.2 in January, up from a revised 48.0 in December, but missing analyst expectations and still indicating contraction.

Similarly, a monthly survey of Canadian purchasing managers suggested the outlook for manufacturing north of the border remains negative, although not quite as dire as in December because of a pickup in export demand. The RBC Canadian Manufacturing PMI registered 49.3 in January, just below the 50-point mark that indicates a neutral outlook.

With files from The Associated Press



Advertisements

Latest Economic News

  • Why do you need a pet insurance, right here, right now

    Economic 24news
    Many Canadians would consider their pets as a part of their immediate, granular, family. Although some professionals think it’s not healthy, that’s the way life is in the twenty first century; There is a steep decline in the birth rate globally, with Japan leading the pack, and pets are filling in the void.
  • Macron says U.K. can't keep full access to E.U. post-Brexit

    Economic CTV News
    LONDON -- French President Emmanuel Macron has suggested that Britain is likely to negotiate a unique relationship with the European Union before it leaves the bloc next year, while stressing that any agreement must be consistent with EU rules. Source
  • Retrofitting suburbia: Old shopping malls can be saved by their parking lots

    Economic CBC News
    Aging shopping centres, built decades ago as beacons of fashion and free parking on the suburban fringe, are gradually becoming relics on a sea of inner-city asphalt. But rather than tinker at the margins to squeeze the last nickels out of old stores, some retailers are doing something dramatic with their biggest asset: land. Source
  • Want to understand the problems with minimum wage? Talk to people who earn it

    Economic CBC News
    There are more than a million Canadians who work minimum wage jobs — they make up 8 per cent of the country's salaried employees. The hourly rate they earn varies across the country, from a low of $10.85 in Nova Scotia, to Alberta where the minimum wage is set to increase to $15 in October 2018. Source
  • Tahoe Resources denies water contamination near its Peru gold mine

    Economic CTV News
    Vancouver-based Tahoe Resources Inc. says reports that heavy rains caused a leach pond at its Shahuindo gold mine in Peru to overflow and cause rainwater contamination are untrue. Tahoe says central Peru is experiencing exceptionally heavy rains, causing wide-spread flooding and mudslides throughout the region. Source
  • Lawsuit launched against obituary website alleges copyright infringement

    Economic CTV News
    ST. JOHN'S, N.L. - A lawyer in Newfoundland and Labrador is bringing a class-action suit against a website that collects obituaries and reposts them. The statement of claim, which has not been proven in court, alleges that the site managed by Afterlife Network Inc. Source
  • Amazon hikes monthly Prime membership price — but not in Canada

    Economic CBC News
    Amazon is hiking the monthly fee it charges its U.S. customers for Prime membership, but the change won't impact Canadians who all pay by the year. The online retailer announced Friday that starting immediately, new customers would be charged $12.99 US a month, up from $10.99 US previously. Source
  • CLC accuses Unifor of leaving lobby group to raid another union

    Economic CBC News
    The head of the Canadian Labour Congress is accusing Unifor of raiding another union for members after it severed ties with the national lobby group for the country's labour movement. Unite Here Local 75, which represents hundreds of hotel workers in Toronto and Mississauga, Ont. Source
  • SEC letter shows bitcoin funds won't happen soon, if ever

    Economic CTV News
    NEW YORK -- It may be a while, if ever, before investors can buy an exchange-traded fund made up of bitcoin and other digital currencies. Federal regulators have a long list of questions they want answered before they'll approve a digital currency fund for Main Street investors. Source
  • GM Canada president says NAFTA update needs to reflect changing technology

    Economic CTV News
    MARKHAM, Ont. - GM Canada president Steve Carlisle says it's important to update NAFTA to reflect changing technology since the original trade deal was signed. Carlisle says the automaker is cautiously optimistic about the trade talks as he prepared for the official opening of its new 700-employee software development centre north of Toronto. Source