Canada Stocks Fall as Commodities Slide on Greece, China ConcernEric Lam
Canadian stocks fell as commodities from oil to metals slumped after Greek voters rejected austerity measures and China unleashed interventions to stabilize its equity markets.
First Quantum Minerals Ltd. and Teck Resources Ltd. slumped at least 1.7 percent as base metals prices declined to the lowest in almost six years. Bankers Petroleum Ltd. sank 10 percent as energy producers tumbled to a January low.
The Standard & Poor’s/TSX Composite Index fell 88.82 points, or 0.6 percent, to 14,593.57 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has fallen 0.3 percent this year, after tumbling 2.3 percent in the second quarter.
Financial markets barely shrugged as the Greek standoff with investors intensified, in a signal that investors see the nation’s crisis contained for now.
Commodities endured the brunt of global selling, as China’s attempts to halt a stock crash and the Greek vote shook confidence in global economic growth. China is Canada’s second-largest trading partner after the U.S.
Eight of 10 industries retreated in the S&P/TSX on trading volume 14 percent higher than the 30-day average.
Energy shares sank 1.9 percent as the demand concerns sent crude tumbling the most in five months. Futures dropped 7.7 percent in New York and 6.3 percent in London, with Brent crude sliding below $60 a barrel for the first time since April.
Suncor Energy Inc. lost 1.2 percent and Encana Corp. retreated 3.8 percent as energy stocks lost 1.9 percent.
The London Metal Exchange’s gauge of six prices on industrial metals dropped 2 percent to the lowest since July 21, 2009. Copper for delivery in three months plunged 2.9 percent while nickel fell 2.5 percent.
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