Canadian Stocks Fall, Ending Two-Day Gain After Cyprus Bank Levy
Canadian stocks dropped for the first time in three days after an unprecedented levy on Cypriot bank deposits threatened to worsen Europe’s debt crisis and hurt raw-materials demand.
Suncor Energy Inc. (SU) and Canadian Natural Resources Ltd. retreated at least 1.2 percent as the oil fell from a three-week high. Teck Resources Ltd. and First Quantum Minerals Ltd. (FM) declined more than 1.2 percent after copper slid to a four-month low. Potash Corp. of Saskatchewan Inc. retreated 2.1 percent after employees of Israel Chemicals Ltd. went on strike to protest a possible takeover by the Canadian company. Barrick Gold Corp. (ABX) gained 2.3 percent as gold rallied.
The Standard & Poor’s/TSX Composite Index (SPTSX) fell 29.53 points, or 0.2 percent, to 12,800.50 at 10:15 a.m. in Toronto. The S&P/TSX has risen 2.7 percent this year.
European policy makers demanded Cyprus, a Mediterranean island nation, raise 5.8 billion euros ($7.6 billion) through a bank tax in order to secure 10 billion euros in rescue loans. The move sparked concern the euro-region’s debt crisis is intensifying. Global markets slumped, as the MSCI World Index (MXWO) fell 1.2 percent.
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