Canadian Stocks Sink to Two-Year Low Following Weak China Databy
Benchmark closes below 13,000 for first time since 2013
Commodity rout extends, industrials slump to lead losses
Canadian stocks slid to the lowest close since 2013, as industrial companies and miners tumbled after weak Chinese trade data fueled concern over global growth.
The Standard & Poor’s/TSX Composite Index fell 120.36 points, or 0.9 percent, to 12,922.47 at 4 p.m. in Toronto. The gauge dipped below 13,000 in August, but hadn’t closed below that level since October 2013. The index has lost 12 percent in 2015, topping only Singapore and Greece among developed-nation markets.
Industrial shares paced declines Tuesday, after data showing China’s imports slumped for a record 13th straight month rekindled worry the slowdown there will spread -- a concern that precipitated the summer rout on global financial markets.
Energy and raw-materials producers have fallen at least 22 percent this year to lead declines in the S&P/TSX. The two groups account for 30 percent of the broader index by weighting. A combination of slowing economic growth in China and a rally in the U.S. dollar in anticipation of an interest-rate increase by the Federal Reserve have crimped commodities prices.
Oil has plunged about 40 percent in the past year while iron ore trades at a record low, clouding the prospects for rebounds in the U.S. and Europe as spending wanes and inflation holds below central-bank targets.
Seven of 10 groups in S&P/TSX declined Tuesday. Industrial and utility shares lost at least 1.7 percent. Raw material companies lost 1.2 percent, extending a year-to-date drop to 22 percent.