Toronto stock market ends eight-day winning streak

TORONTO -- North American stock markets tumbled at the close Tuesday amid lower energy and metal prices and fresh concerns over the growth of China's economy.

See Full Article

Toronto's S&P/TSX composite index snapped an eight-day winning streak by ending the day 72.55 points lower at 13,311.05, weighed down by metals and mining, energy and gold stocks.

Metals stocks were the biggest decliner, falling by 7.32 per cent, with shares in miner First Quantum being biggest loser. Its stock was down 16 per cent, or $1.17, at $6.12 per share.

Overnight, China reported that its exports plunged 25 per cent last month from a year earlier. The world's second biggest economy blamed the weakness on falling global demand and the shutdown during the Lunar New Year holiday for the lower sales. Analysts were expecting poor trade data because of the holiday, but the figure is a bigger miss than they had anticipated.

The data pulled down copper prices, as the May contract declined six cents to US$2.22 a pound.

The Canadian dollar lost more than two-thirds of a cent, down 0.78 at 74.54 cents US.

In New York, the Dow Jones industrial average lost 109.85 points at 16,964.10, while the broader S&P 500 index dropped 22.50 points to 1,979.26. The Nasdaq composite gave up 59.43 points at 4,648.82.

John Wilson, chief executive at Sprott Asset Management, said the declines do not come as a surprise because markets have enjoyed a good run in recent weeks and were inevitably going to pull back sometime.

"The real question is that what kind of news do we get from here that reaffirms this rally or puts it into question?" he asked.

"That's what the next month or so is going to be about. People trying to look for bread crumbs that say they're on the right trail for buying these stocks or bread crumbs that say there was no basis for this rally and the situation is still difficult and you want to take your profits and run."

The Bank of Canada is expected to deliver its latest interest rate decision on Wednesday. It's widely anticipated that the central bank will hold its overnight rate at 0.5 per cent, amid positive yet still tepid signs of economic growth.

All eyes will also be on the latest policy meeting of the European Central Bank. Investors are expecting ECB President Mario Draghi to confirm that inflation across the 19-country eurozone has fallen back below zero, and that there will be further stimulus from the central bank.

The losses on Bay and Wall Streets came as commodities pulled back.

The April crude oil contract fell US$1.40 to US$36.50 a barrel, while the April gold contract dipped $1.10 at US$1,262.90 a troy ounce. The price of April natural gas gained two cents at US$1.71 per mmBtu.



Advertisements

Latest Economic News

  • Household debt-to-income ratio should winding down: central banker Wilkins

    Economic CTV News
    OTTAWA -- A top Bank of Canada official says she expects the country's high levels of household debt relative to disposable income to gradually start winding down. Speaking before a parliamentary committee, senior deputy governor Carolyn Wilkins says the central bank is seeing a slowdown in credit growth for both mortgages and other forms of household debt at a time when labour income is moving higher. Source
  • Competition Bureau approves Metro's purchase of Jean Coutu, with conditions

    Economic CTV News
    OTTAWA -- The Competition Bureau of Canada has approved Metro Inc.'s purchase of the Jean Coutu Group provided it sells 10 pharmacies in eight Quebec communities. The federal agency says the communities would face reduced competition if the company doesn't divest the assets in Amos, Berthierville, Baie St-Paul, Carleton-sur-Mer, Coaticook, Disraeli, La Baie and La Sarre. Source
  • Former pilot asks to be reinstated at Air Canada after alleged gender dispute

    Economic CTV News
    OTTAWA -- A former pilot is asking the Canadian Human Rights Commission to resurrect her "lifelong dream" to fly for a major airline -- an ambition she abandoned five years ago after she was allegedly discriminated against by an Air Canada colleague because she's a woman. Source
  • CN Rail reports lower first quarter profit as winter weather bites into bottom line

    Economic CBC News
    Canadian National Railway Co. is cutting its 2018 financial outlook as it reports lower first-quarter income and revenue due to severe winter weather and lower network "resiliency." The company says it now expects to post 2018 adjusted diluted earnings per share of $5.10 to $5.25, down from its previous target of $5.25 to $5.40. Source
  • Strong ad sales boost Google parent Alphabet's earnings

    Economic CBC News
    Google parent Alphabet on Monday reported a jump in first-quarter net income on the back of strong digital ad sales and an accounting adjustment. The Mountain View, California-based company's net income surged 73 per cent to $9.4 billion, or $13.33 per share. Source
  • Vancouver to rake in $30M in empty homes tax in first year

    Economic CTV News
    VANCOUVER -- The city of Vancouver's new empty homes tax is expected to bring in $30 million in revenue in its first year. Vancouver Mayor Gregor Robertson said $17 million has already been collected from owners of almost 8,500 properties that were determined to be vacant or under utilized for at least six months of the year. Source
  • Saskatchewan introduces law to allow control of oil, gas exports

    Economic CTV News
    REGINA -- The Saskatchewan government has introduced legislation that would allow the province to control its oil and gas exports, similar to a bill recently tabled in Alberta. Once passed, the law would establish a permitting process for people or corporations looking to export energy products outside the province. Source
  • Loblaws squares off with CRA in $400M tax fight

    Economic CBC News
    Loblaw Companies Ltd. and the Canada Revenue Agency faced off in Tax Court on Monday over allegations that the retailer's Barbadian banking subsidiary had been misused for tax avoidance — a long-running dispute that could cost the retailer more than $400 million. Source
  • Former pilot asks to be reinstated after quitting over alleged gender dispute

    Economic CBC News
    A former pilot who left Air Canada alleging she was discriminated against on the basis of her gender has asked the Canadian Human Rights Commission to order that she be reinstated. Jane Clegg fought back tears as she testified today in Ottawa at a human rights tribunal into her complaint against the airline. Source
  • Toys 'R' US ends Canadian stores auction with Fairfax as the only bidder

    Economic CTV News
    TORONTO -- Toys "R" Us Inc. will seek approval to sell its Canadian unit to Fairfax Financial Holdings Ltd. after cancelling an auction for the company's Canadian operations. According to U.S. bankruptcy court documents, the auction received no qualified bids other than the stalking horse offer from Toronto-based Fairfax. Source