China, Ukraine Crisis drive markets down
TORONTO • North American stock markets sold off Thursday amid growth concerns in China that have pressured markets all week, as well as increasing jitters over the crisis in Ukraine.
The S&P/TSX composite index dropped 73.86 points to 14,245.14 with losses limited by the gold sector as traders looking for safety sent bullion prices higher for a fourth day.
The Canadian dollar rose US0.51¢ to US90.47¢.
New York indexes tumbled with the Dow Jones industrial average falling 231.19 points to 16,108.89. Nasdaq fell 62.91 points to 4,260.42 and the S&P 500 index gave back 21.86 points to 1,846.34.
Traders grew cautious ahead of a referendum in Ukraine’s Crimea region on Sunday that will ask residents if they want the territory to become part of Russia.
Meanwhile, Chinese industrial production rose by a lower than anticipated 8.6% in the first two months of this year.
Also, China’s premier Li Keqiang said his country will keep this year’s economic expansion strong enough to create new jobs but will emphasize market-opening reform and the environment over hitting its official growth target of 7.5%.
“So, the Wild East is over now, and they’re moving to a more managed scenario, they’re going to tighten the screws,” said Wes Mills, chief investment officer at Scotia Private Client Group. “And sure, it’s a slower growth kind of environment and in the long run it’s good; in the short run, it’s got the commodity guys nervous.”
Copper prices have slid 9% over the past five sessions while the TSX base metals segment has been by far the worst performer this week, down more than 9%.
The May contract for the metal lost US4¢ to US$2.92 a pound Thursday and the base metals sector was 1.22% lower.
More than demand issues have weighed on copper. The metal is also used for financing transactions and worries about corporate defaults have prompted concerns that a wave of such failures could result in a massive liquidation of copper on the markets.
Oil prices rose US21¢ to US$98.20 a barrel, but the energy sector slipped 0.21%.
Financials were also a major drag, down 0.84%.
Bullion prices ended the session at their highest close since early September 2013 amid concerns centred on the Ukraine-Russian crisis, rising US$1.90 to US$1,372.20 an ounce and the gold sector was ahead about 2.25%.
In corporate news, shares in Empire Co. fell $2.12 to $68.10 as the parent of supermarket chain Sobeys Inc. reported that quarterly net earnings slumped to $400,000, or nil per diluted share, compared with $74.1-million ($1.09) in the year-earlier period. Ex-items, earnings were 84¢ per share, below analyst estimates of $1.23 per share.
Media giant Quebecor Inc. posted adjusted earnings from continuing operations of $68-million, or 55¢ per share, while revenue remained relatively flat at $1.12-billion. Analysts had called for 53¢ of adjusted earnings on $1.15-billion in revenue and its shares dipped 15¢ to $24.79.