Canadian Stocks Rebound to Halt Longest Slide Since 2002Eric Lam
S&P/TSX posts first positive trading day of the year
Eldorado Gold plunges 19% after suspending Greece project
Canadian stocks rallied in the final hour of trading to snap the longest losing streak since 2002, as gains from financials outweighed declines by raw-materials and energy producers.
The Standard & Poor’s/TSX Composite Index closed 0.4 percent higher at 12,373.90, after a seesaw trading day. The equity gauge rose as much as 1.1 percent and lost as much as 1 percent on Tuesday. Toronto-Dominion Bank and Royal Bank of Canada advanced more than 0.7 percent to lead the nation’s lenders higher. Canadian National Railway Co. rose a third straight day.
Eldorado Gold Corp. led resource-producers lower, as a Bloomberg gauge of global commodities touched a low of at least 1991. Energy companies also slid, as oil briefly tumbled below $30 a barrel.
Equities worldwide have tumbled to start the year as concern that a slowdown in China will thwart worldwide growth returned, after the nation unexpectedly set lower reference rates for its currency.
The MSCI All-Country World Index of developed and developing markets snapped a six-day slide while the S&P 500 rebounded from a mid-day drop. China’s central bank had earlier stabilized markets after repeatedly intervened in the offshore market. Crude posted a fresh 12-year low, tumbling 2.5 percent to close at $30.64 after touching $29.93 earlier.
Canada’s resource-rich benchmark equity gauge lost 7.4 percent during a nine-day slide to start 2016. Canada was the second Group of 7 country to see its benchmark enter a bear market, capping a 20 percent slide Jan. 7, after Germany’s DAX Index did in August.
Eldorado Gold Corp. sank 19 percent, the biggest drop since December 2008, after the gold mining company suspended activities at its mining project in Greece after a prolonged battle to develop the mine.
The S&P/TSX Gold Index lost 2.5 percent as the metal retreated for a third straight day. Gold producers had rallied at the start of the year as investors sought a haven from the market turmoil in China. Goldcorp Inc. lost 2.6 percent Tuesday.