Canadian Stocks Decline Amid Growing Threat of U.S. Shutdown

Canadian stocks fell, paring the best quarterly gain in a year, with all 10 main industries retreating as a likely U.S. government shutdown tomorrow weighed on global equities.

Suncor Energy Inc. (SU) dropped 1.5 percent to pace losses among energy producers as crude sank to a three-month low. Catamaran Corp. lost 2.9 percent as health-care stocks fell the most in the benchmark index. Petrominerales Ltd. soared 50 percent after agreeing yesterday to sell itself to Pacific Rubiales Energy Corp. in a deal worth C$935 million.

The Standard & Poor’s/TSX Composite Index (SPTSX) fell 58.72 points, or 0.5 percent, to 12,785.36 at 10:11 a.m. in Toronto. The benchmark Canadian equity gauge has jumped 5.4 percent this quarter, the biggest gain since September 2012, and is up 2.9 percent in 2013.

The MSCI World Index of developed market stocks sank 0.9 percent, the biggest decline in a month, as equities around the world retreated. The S&P 500 Index, the benchmark U.S. gauge, slid 0.7 percent.

The U.S. Congress is scheduled to meet today to attempt to end a stalemate that raises the risk of the first government shutdown in 17 years and threatens talks to increase the debt limit. The U.S. is Canada’s largest trading partner.

To contact the reporter on this story: Eric Lam in Toronto at elam87@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net

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