Canadian stocks dropped for the first time in three days after an unprecedented levy on Cypriot bank deposits threatened to worsen Europe’s debt crisis and hurt raw-materials demand.
Suncor Energy Inc. (SU) and Canadian Natural Resources Ltd. retreated at least 1.2 percent as the oil fell from a three-week high. Teck Resources Ltd. and First Quantum Minerals Ltd. (FM) declined more than 1.2 percent after copper slid to a four-month low. Potash Corp. of Saskatchewan Inc. retreated 2.1 percent after employees of Israel Chemicals Ltd. went on strike to protest a possible takeover by the Canadian company. Barrick Gold Corp. (ABX) gained 2.3 percent as gold rallied.
The Standard & Poor’s/TSX Composite Index (SPTSX) fell 29.53 points, or 0.2 percent, to 12,800.50 at 10:15 a.m. in Toronto. The S&P/TSX has risen 2.7 percent this year.
European policy makers demanded Cyprus, a Mediterranean island nation, raise 5.8 billion euros ($7.6 billion) through a bank tax in order to secure 10 billion euros in rescue loans. The move sparked concern the euro-region’s debt crisis is intensifying. Global markets slumped, as the MSCI World Index (MXWO) fell 1.2 percent.
To contact the reporter on this story: Eric Lam in Toronto at firstname.lastname@example.org
To contact the editor responsible for this story: Lynn Thomasson at email@example.com