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

  • Russia says oil production cuts may continue to boost prices

    Economic CTV News
    KUWAIT CITY -- Russia's energy minister says there's "94 per cent" compliance on a six-month oil production cut among OPEC members and non-cartel nations, as well as discussions about continuing the cuts to boost crude prices. Source
  • Iran imposes sanctions on 15 U.S. companies

    Economic CTV News
    TEHRAN, Iran - Iran has imposed sanctions on 15 American companies over their alleged support for Israel, terrorism and repression in the region. A Foreign Ministry statement carried by the state-run IRNA news agency Sunday said the companies are barred from any agreements with Iranian firms and that former and current directors will not be eligible for visas. Source
  • How to roll up the rim without buying coffee

    Economic CBC News
    You don't need to make a purchase to enter contests such as Tim Hortons' Roll Up The Rim To Win. But sometimes the alternatives are just as costly. (Tim Hortons ) Despite the well-known slogan, you don't actually have to roll up the rim to win. Source
  • Convenience or comparison? Why sticking with 1 bank might not be the best option

    Economic CBC News
    Consumers love the convenience of one-stop shopping for their financial needs — but it could be costing them. In a poll conducted by Ipsos and commissioned by LowestRates.ca, an online interest rate comparison site, six in 10 Canadian respondents said they prefer to have all their financial products and credit cards at one bank. Source
  • More TV streaming services join U.S. market, leaving Canada far behind

    Economic CBC News
    YouTube's announcement that it will soon launch an online TV streaming service cut deep for some Canadians. That's because it's not coming here. YouTube TV will offer more than 40 live TV channels for only $35 US a month. Source
  • Poker tables keep decreasing on Las Vegas casino floors

    Economic CTV News
    LAS VEGAS -- When the Monte Carlo closes its eight-table poker room in about a month as part of a $450 million overhaul, the Las Vegas Strip will have lost nearly a quarter of the tables it had a decade ago. Source
  • Las Vegas casinos continue to close poker rooms

    Economic CTV News
    LAS VEGAS -- When the Monte Carlo casino closes its eight-table poker room in about a month as part of a $450 million overhaul, the Las Vegas Strip will be down nearly a quarter of the tables it had a decade ago. Source
  • Google's YouTube loses more advertisers over offensive videos

    Economic CBC News
    An advertising boycott of YouTube is broadening, a sign that big-spending companies doubt Google's ability to prevent marketing campaigns from appearing alongside repugnant videos. PepsiCo, Walmart Stores and Starbucks on Friday confirmed that they have also suspended their advertising on YouTube after the Wall Street Journal found Google's automated programs placed their brands on five videos containing racist content. Source
  • National contest tries to convince students that lucrative sales jobs are 'sexy'

    Economic CBC News
    Sonya Meloff wants everyone to know that a career in sales is sexy. Not sleazy. "I think that sales is a really sexy job," says the founder of the Toronto's Sales Talent Agency. "You get to be at the forefront of representing a company, you're the one that gets to talk to the customers. Source
  • Report examines grim Bangladesh leather trade, links to West

    Economic CTV News
    DHAKA, Bangladesh -- Hazardous, heavily polluting tanneries, with workers as young as 14, supplied leather to companies that make shoes and handbags for a host of Western brands, a non-profit group that investigates supply chains says. Source