- Oil has plunged 45% this year as supply glut seen persisting
- China's weak industrial output offsets jump in retail sales
Canadian stocks fell a sixth day, the longest stretch since the summer rout, as weak industrial data from China and increased crude stockpiles in the U.S. sent commodities lower.
Signs of slowing industrial growth in the world’s second-largest economy continue to weigh on resources from oil to zinc and copper. Materials and energy producers in the Canadian benchmark have lost more than 5 percent in the past six sessions, failing to hold a rebound from an August selloff.
The Standard & Poor’s/TSX Composite Index fell 69.70 points, or 0.5 percent, to 13,341.93 at 4 p.m. in Toronto. The benchmark equity gauge has lost 2.7 percent in six days, the longest losing streak since Aug. 24. The S&P/TSX has lost 8.8 percent this year, trailing only Singapore and Greece among developed markets.
Energy shares slipped 2.2 percent as a group for a sixth day of losses as crude fell to a two-month low. Companies in the oil and gas industries account for about 19 percent of the S&P/TSX.
Miners also retreated, adding to a weeklong slide, as China’s industrial output in October matched the weakest since 2008. China, one of the world’s largest consumers of natural resources, is Canada’s second-largest trading partner after the U.S.
First Quantum Minerals Ltd. and Teck Resources Ltd. dropped at least 7.2 percent. Copper futures fell a fifth day and have tumbled about 20 percent this year.
Canadian equities have lagged most peers, led by declines in natural resource and health-care stocks, as the country’s resource-dominated market has been hampered by a slump in oil prices, slowing overseas growth and the prospect of an interest-rate hike from the Federal Reserve.
Valeant Pharmaceuticals International Inc. slipped 5.5 percent to a one-week low. Debt investors are growing concerned disruptions to Valeant’s cash flow will lead to a squeeze in the company’s debt. Valeant has lost 70 percent from an Aug. 5 high amid pressure over how it prices its drugs. The drugmaker said in a conference call Tuesday that the decision to cut ties with pharmacy Philidor Rx Services would meaningfully affect its dermatology business.