- Magna, Linamar extend losses as scandal engulfs Volkswagen
- WTI oil closes below $45 a barrel as U.S. production gained
Canada capped the biggest two-day drop in a month, as energy shares tumbled with the price of crude and auto-parts makers retreated amid the Volkswagen AG scandal.
The country’s benchmark index sank 0.8 percent, adding to a 2.1 percent slide Tuesday. Magna International Inc., the auto-parts supplier whose biggest customers include Volkswagen, declined a fourth day. Energy producers fell 2.1 percent as oil in the U.S. sank 4.1 percent amid renewed demand concern.
The Standard & Poor’s/TSX Composite Index lost 107.40 points to 13,383.69 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has tumbled 2.9 percent in two days, the most since the height of the global equities selloff in August. The index is headed for a fifth straight monthly drop and its worst quarter in four years.
Canadian equities are among the worst-performing markets in the developed world this year, led by declines among raw-materials and energy producers of at least 23 percent, amid plunging oil prices and uncertainty about global economic growth, especially in China. China is Canada’s second-largest trading partner after the U.S.
First Quantum Minerals Ltd. retreated 4.2 percent and Teck Resources Ltd. slipped 3.4 percent. Potash Corp. of Saskatchewan Inc. sank 4.8 percent, to a December 2008 low. The stock has slumped 17 percent in five days.
Crescent Point Energy Corp. tumbled 6.4 percent and Encana Corp. retreated 4.2 percent as West Texas Intermediate oil sank 4.1 percent to settle at $44.48 a barrel after the Energy Information Administration said output increased for the first time in seven weeks.
The Bloomberg Commodity Index, a basket of prices for natural resources from copper to oil and gold, fell 0.6 percent to the lowest in a month. The gauge has slumped 16 percent this year.
Magna fell 0.9 percent, for a fourth straight retreat, and Linamar Corp. declined 1.9 percent. Volkswagen, the German automaker, has become engulfed in a scandal over falsified pollution controls that will cost the company at least 6.5 billion euros ($7.3 billion). Chief Executive Officer Martin Winterkorn resigned as a result.
Valeant Pharmaceuticals International Inc. added 0.9 percent, rebounding from a July low. The drugmaker had slumped 10 percent in the past two days amid a broader selloff in the health-care industry after Democratic presidential candidate Hillary Clinton criticized some pricing practices.