TSX Down More Than 70 Pts After Two Days of 2014; Earnings Season May Kick Start Improvement
Canada's main stock market, the Toronto Stock Exchange, today added another 45 points in losses to the 27 points dropped Thursday as 2014 gets off to a disappointing start for investors on lower energy and raw materials stocks, largely owing to bad news out of China and on increased supply of oil. Two days of successive losses have taken a little bit of the shine off a market that gained 9.6% in 2013.
Most sectors were set to close lower as prices settled Friday, with Health Care, Info Tech and Industrials up - although the latter two could yet turn negative.
Today, a government survey showed that growth in China's services sector fell to four months low in December. This came a day after the release of poor China manufacturing data. Together, the data raises doubts about China increasing demand for commodities.
In the U.S., meanwhile, the Energy Information Administration reported that stockpiles of distillate fuel, including heating oil and diesel, rose 5 million barrels last week.
Market watchers will be hoping the start of earnings season in the U.S. and in Canada next week will help kick start an improvement. Reflecting that, dual listed Exfo (EXFO, EXF.TO) will be among the first to report on Wednesday.