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

  • Manufacturer says it's removing relabeled Ivanka Trump items

    Economic CTV News
    NEW YORK -- An apparel company says it accepts responsibility for Ivanka Trump clothing that was relabeled as a different designer. G-III Apparel Group Inc., which is licensed to manufacture clothing under the Ivanka Trump brand, said it was removing the mislabeled items sold at discount retailer Stein Mart. Source
  • No NAFTA withdrawal for now, Trump assures Canada and Mexico

    Economic CTV News
    WASHINGTON - U.S. President Donald Trump swore off plans to cancel the North American Free Trade Agreement on Wednesday, after a day rife with speculation that he could be on the verge of threatening to obliterate the seminal trade deal. Source
  • United Airlines raising limit on payments to bumped fliers

    Economic CTV News
    DALLAS - United Airlines says it will raise the limit - to $10,000 - on payments to customers who give up seats on oversold flights and will increase training for employees as it deals with fallout from the video of a passenger being violently dragged from his seat. Source
  • United Airlines to offer up to $10K US to bumped passengers

    Economic CBC News
    United Airlines said on Thursday it would offer passengers who volunteer to forfeit their seats on overbooked flights up to $10,000 US as part of the carrier's efforts to repair the damage from the rough removal of a passenger. Source
  • Asian stocks slip as investors monitor Trump tax plan

    Economic CTV News
    HONG KONG - Asian shares slipped Wednesday as investors digested the scant details of President Donald Trump's U.S. tax overhaul, and economic and corporate reports. Investors also were awaiting a policy statement from the Bank of Japan that's expected to provide fresh insights into the state of Asia's second-biggest economy. Source
  • Trump to order probe into aluminum imports

    Economic CTV News
    WASHINGTON -- President Donald Trump will direct his administration Thursday to expedite a new investigation into whether aluminum imports are jeopardizing U.S. national security. Commerce Secretary Wilbur Ross said the president will sign a memo ordering him to determine the impact of rising aluminum imports. Source
  • Suncor Energy reports net earnings of $1.35B on higher prices, production

    Economic CTV News
    CALGARY -- Suncor Energy is reporting net earnings of $1.35 billion or 81 cents per share in the first quarter of 2017, compared with $257 million or 17 cents a year earlier, thanks to higher commodity prices and oilsands production. Source
  • Softwood deal was close, but Canada gambled on better terms from Trump, former U.S. trade rep says

    Economic CBC News
    A former U.S. trade representative says the Obama administration was on the verge of signing a new softwood lumber deal with Canada but the pact fell through when someone on the Canadian side felt a better deal could be reached with the incoming Trump administration. Source
  • Shaw TV stations in Calgary, Edmonton and Vancouver closing

    Economic Toronto Sun
    Calgary community television station Shaw TV will close effective Aug. 15, Shaw Communications announced Wednesday, though the cable giant pledged to demonstrate its commitment to local coverage by injecting funds into Global News instead. Local Shaw TV stations will also be closing in Vancouver and Edmonton, affecting 70 positions between the three cities, the company said. Source
  • Small, medium sized softwood companies hit hardest by U.S. penalties

    Economic CTV News
    OTTAWA - Some softwood lumber companies could begin issuing layoff notices as early as next week as the fallout from the new import tariffs slapped onto Canadian softwood by the U.S. government start kicking in. Source