Canadian Stocks Fall Most in Three Weeks as Oil, Metals Decline

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Canadian stocks declined the most in almost three weeks as raw-material and energy companies dropped with oil and metals prices.

Kinross Gold Corp. and Goldcorp Inc. dropped more than 3.3 percent to pace declines among raw-material stocks. Gran Tierra Energy Inc. and Precision Drilling Corp. decreased at least 3.9 percent as a stronger dollar pulled crude prices lower.

The Standard & Poor’s/TSX Composite Index slid 136.59 points, or 0.9 percent, to 15,050.81 at 4 a.m. in Toronto, for the biggest drop since May 6. The gauge added 0.6 percent last week.

Eight of the 10 main groups in the S&P/TSX slipped. Energy companies decreased 1.2 percent. The S&P/TSX Gold Index dropped 2.8 percent and Brent crude fell 2.7 percent on strength in the dollar amid speculation that the Federal Reserve will raise interest rates this year.

Crude’s correlation with the dollar became the most pronounced since 2012. The stronger dollar will add to pressure on crude, according to Morgan Stanley. A rising greenback curbs the appeal of raw materials priced in the U.S. currency.

The dollar rose to an almost eight-year high against the yen as U.S. data from housing to manufacturing beat estimates, boosting the case for higher interest rates.

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