TSX LOWER A MID FALLING COMMODITIES
Mining and energy stocks led the way to a sharply lower session on the Toronto stock market Friday as demand concerns dented commodity prices.
The S&P/TSX composite index fell 96.13 points to 12,650.42.
Falling commodity prices punished the Canadian dollar even as economic-growth data came in better than expected.
The loonie was down 0.64¢ to US96.45¢ as Statistics Canada reported that the economy expanded at an annualized rate of 2.5% during the first quarter, which was higher than the 2.3% reading that had been expected.
Statistics Canada also said that GDP growth for March came in at 0.2%, higher than the 0.1% increase that economists had expected. U.S. indexes were lacklustre as traders balanced a disappointing report on personal-spending data with a strongerthan-expected showing from the manufacturing sector and encouraging consumer confidence numbers.
The Dow Jones industrials plunged 208.96 points to 15,115.57, the Nasdaq dropped 35.39 points to 3,455.91, while the S&P 500 index was down 23.67 points to 1,630.74.
The Toronto market dipped a slight 23 points for the week, while the Dow industrials gave back 188 points or 1.22% as cracks started to show up in a rally that has gone on practically non-stop since late last year. Americans cut back on spending in April after their income failed to grow.
The U.S. Commerce Department says American consumer spending dropped a seasonally adjusted 0.2% in April, the most since last May. That follows a 0.1% increase in March.
Other data showed the final reading of the University of Michigan’s consumer sentiment survey for May edged up to 83.8, the best level in more than six years.
Commodity prices were weak with July crude on the New York Mercantile Exchange down $1.64 to US$91.97 a barrel. The energy sector was down almost 1% and Canadian Natural Resources stepped back $1.04 to C$30.90.
The base-metals sector dropped 2.7% while July copper edged two cents lower to US$3.29 a pound. Teck Resources lost 90¢ to C$27.69, while HudBay Minerals dropped 47¢ to $8.25.
Financials also were a weight, down 1% as CIBC shed 87¢ to $78.35 after investment-banking firm KBW cut its price target to $76. It cited a potential for lower earnings and risk from the company’s Aeroplan agreement with Aimia. The agreement is set to expire at the end of the year. June gold fell $19 to US$1,393 an ounce, taking the gold sector down about 0.5%. Iamgold Inc. faded 38¢ to C$5.43.