Crude’s slump to a six-year low sent Canadian stocks lower for a third day, with oil producers resuming a rout and gold miners tumbling.
The slide in energy stocks overshadowed an easing of anxiety in global financial markets caused by China’s shock devaluing of its currency. An ebb in demand for haven assets such as gold sent the metal lower after a five-day rally and dropped shares of Canadian miners.
Energy and raw-materials producers renewed slides that have made the two the worst-performing industries in the Standard & Poor’s/TSX Composite Index this year.
The S&P/TSX fell 101.13 points, or 0.7 percent, to 14,238.40 at 4 p.m. The benchmark Canadian equity gauge has fallen 2.7 percent this year and is at a two-week low.
West Texas Intermediate crude dropped 2.5 percent to $42.23, the lowest since March 2009, as U.S. crude inventories remained above the five-year average. Oil moved into a bear market in July.
Encana Corp. lost 6.2 percent and Pacific Rubiales Energy Corp. tumbled 10 percent to lead energy stocks lower. Trican Well Service Ltd. plunged 14 percent to a November 2000 low.
The Bloomberg Commodity Index, which tracks a basket of prices for raw materials including gold, natural gas and crude, slipped 0.4 percent, for a third straight drop. The index had fallen to a 13-year low last week, dragging down companies that comprise about one-third of Canada’s stock market. Prices have tumbled 13 percent this year.
Goldcorp Inc. fell 4.5 percent and Barrick Gold Corp. decreased 4 percent as gold producers tumbled. Gold for December delivery lost 0.7 percent in New York. The S&P/TSX Gold Index had soared 20 percent in a five-day rally through Wednesday, the biggest gain since December 2008.