Canada Stocks Fall to Month Low as Commodities Slip With Banks

  • Bloomberg Commodity Index slides 4th day to lowest since 1999
  • Global equities retreat as Fed rate tightening looms

Canadian stocks fell a fourth day, for the lowest close in a month, as financial services companies declined and energy producers slipped with crude prices.

Weaker demand for coal, iron and other commodities from declining heavy industries led to a slump in imports in China, one of the world’s largest consumers of raw-materials. The nation is Canada’s second-largest trading partner after the U.S. The rising prospect for higher American interest rates led to a slump in financial services shares.

The Standard & Poor’s/TSX Composite Index fell 70.68 points, or 0.5 percent, to 13,482.62 at 4 p.m. in Toronto. The index has lost 7.9 percent this year, trailing only Singapore and Greece among developed markets.

Canadian equities have lagged most peers 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.

Canadian Pacific Railway Corp. jumped 5.7 percent, the most in two years. The company, the second-biggest railroad in Canada, is exploring a takeover of U.S. carrier Norfolk Southern Corp. according to people familiar with the matter.

Energy shares and base-metals producers slipped Monday, as nickel fell to the lowest in more than two months and a basket of global commodities tumbled a fourth day. First Quantum Minerals Ltd. and Teck Resources Ltd. retreated 2.7 percent.

Crude futures in New York slipped below $44 a barrel to the lowest level in two weeks. Oil has slumped more than 40 percent in the past year amid speculation global oversupply will persist. Canadian Natural Resources Ltd. and Suncor Energy Inc. dropped at least 1.3 percent.

Brookfield Asset Management Inc., Canada’s largest alternative asset manager, lost 5.6 percent for the biggest decline in five years, after an Australian newspaper reported Qube Holdings Ltd. will submit a counter-proposal to Brookfield’s earlier bid for Asciano Ltd., an Australian rail and port operator.

Financial stocks retreated 1.1 percent as a group, reversing a two-day advance. Royal Bank of Canada and Bank of Nova Scotia, among the nation’s largest lenders, slipped at least 0.8 percent.

Valeant Pharmaceuticals International Inc. increased 3.7 percent for a second day of gains, after rebounding from a 2013 low. The drugmaker will host an investor call Tuesday to provide an update on its operations including the transition from its prior relationship with specialty pharmacy Philidor. Valeant has lost 68 percent from an Aug. 5 high amid pressure over how it prices its drugs.

Before it's here, it's on the Bloomberg Terminal.