- Metals producers slide as copper, nickel tumble on growth woes
- Bombardier slumps after soaring a record 56 percent last week
Canada stocks fell, adding to last week’s loss, as commodities producers slipped after disappointing Chinese industrial data deepened investor concerns that global economic growth is slowing.
Energy and raw-materials producers paced declines among equities, dropping at least 1.4 percent. West Texas Intermediate crude fell a fifth time in six days as China’s slowdown stoked fears global oversupply will continue. New York oil tumbled 2.8 percent Friday after Goldman Sachs Group Inc. said prices could fall to as low as $20 a barrel.
Canadian stocks have continued their slide this month after slumping 4.2 percent in August for the worst performance in a year amid a rout among global financial markets following China’s shock currency devaluation. China is Canada’s second-largest trading partner after the U.S.
The Standard & Poor’s/TSX Composite Index lost 108.13 points, or 0.8 percent, to 13,353.34 at 4 p.m. in Toronto. The equity gauge has slumped 8.7 percent this year.
Global stocks retreated, with the Shanghai Composite Index dropping the most in three weeks overnight. Industrial output in China rose 6.1 percent in August, short of economists’ forecasts, while investment in the first eight months increased at the slowest pace since 2000. The S&P 500 slipped 0.4 percent in New York.
Canada’s federal government posted an unexpected surplus of C$1.9 billion in its last budget for the fiscal year ended March 31, the finance ministry said. Prime Minister Stephen Harper’s government had previously forecast a C$2 billion deficit.
First Quantum Minerals Ltd. dropped 8.1 percent and Teck Resources Ltd. lost 3 percent as raw-materials producers slumped 1.7 percent as a group. Nickel and copper fell, leading declines in industrial metals.
B2Gold Corp. tumbled 7 percent and Eldorado Gold Corp. retreated 3.3 percent as gold in New York rose 0.4 percent after a 1.6 percent decline last week. The U.S. Federal Reserve begins two days of meetings in Washington Wednesday, with traders predicting a 30 percent chance the central bank will raise interest rates.
The resource-rich S&P/TSX has been one of the worst-performing developed markets in the world this year as crude plunged. Energy and raw-materials producers have the biggest declines among 10 industries in the S&P/TSX this year.
SNC-Lavalin Group Inc. dropped 3.9 percent after naming Neil Bruce the engineering firm’s next chief executive officer effective Oct. 5, succeeding Robert Card. Bruce had been SNC’s chief operating officer.
Bombardier Inc. sank 11 percent for a second day of losses, after soaring a record 56 percent last week amid optimism over the potential value of its rail unit and sales prospects for the CSeries jet. The company is due for a “significant correction” as the market-implied value of Bombardier’s transportation unit is less likely, Macquarie Capital Markets analyst Konark Gupta said in a note.