Canadian stocks fell, after two days of gains, as commodities producers retreated with the price of crude and metals.
Teck Resources Ltd. lost 1.9 percent as copper fell the most since January. Athabasca Oil Corp. slid 4.3 percent as oil declined in New York. Valeant Pharmaceuticals International Inc. increased 2.2 percent after the drugmaker said it will appoint a new chief financial officer.
The Standard & Poor’s/TSX Composite Index lost 58.16 points, or 0.4 percent, to 14,830.88 at 4 p.m. in Toronto. The loss halted a two-day rally of 1 percent and cut the S&P/TSX’s advance this year to 1.4 percent.
Seven of 10 industries in the benchmark index TSX retreated on trading volume 16 percent lower than the 30-day average.
Yamana Gold Inc. lost 4.8 percent and Silver Wheaton Corp. retreated 0.9 percent as raw-materials producers declined 1.5 percent as a group. First Quantum Minerals fell 3.5 percent and Lundin Mining Corp. lost 3.6 percent.
Trinidad Drilling fell 9.7 percent, the most since 2011, and Suncor Energy Inc. lost 2 percent. Oil fell 1.1 percent in New York after the International Energy Agency said this year’s price rally is under threat as OPEC’s biggest members pump record amounts of crude.
Trinidad Drilling agreed to acquire CanElson Drilling Inc. in a deal valued at about $505 million, including the assumption of $36 million in CanElson debt. BMO Capital Markets analyst Michael Mazar said he was “struggling” to see the rationale behind the deal as he downgraded the stock to market perform, the equivalent of a hold.
U.S. retail sales increased 1.2 percent in May, matching the median forecast of economists surveyed by Bloomberg and following a 0.2 percent gain in April. The data show American consumers are ready to spend on more than just automobiles, unlocking months of savings from cheap gasoline. The U.S. is Canada’s largest trading partner.