TSX Plunges 110 Points at Midday; Resource Stocks Tumble As China Growth Fears Weigh on Commodities
The Canadian benchmark index saw sharp losses again on Monday, diving 110 points at midday, after taking a beating from weak commodity prices. Resource stocks, in particular, were under pressure amid fears of an economic slowdown in China, the world's second largest economy and Canada's trading partner.
All eyes are on the upcoming release of China's manufacturing PMI report, which the market predicts would show a stalling in the large factory sector in September, based on a Reuters poll. But unlike the economic-data driven U.S. Federal Reserve, China's Finance Ministry won't make any changes in the economic policy over any one economic indicator, Minister Lou Jiwei reportedly said over the weekend.
In equities, miners and energy dropped 2.33% and 1.82%, respectively, with gold 0.02% cheaper at US$1,216.40 an ounce and oil off 0.92% at US$91.56 a barrel. The heavyweight financials shed 0.22%.
Other notable decliners were healthcare (-1.40%) and info tech (1.06%).
Trading volume exceeded 147 million shares. B2Gold (BTO.TO) was the most actively traded.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.