TSX Plunges 1.4% as Commodities Retreat on China Fears
The TSX is down nearly 190 points or 1.4% this morning with almost all sectors in the red. Miners are down a whopping 7.4% this morning on the back of lower gold, silver and copper prices .
Energy is the next biggest loser, down 2.2%.
Bloomberg reported that Chinese industrial companies' reported profits fell the most in at least four years. Industrial profits tumbled 8.8% in August from a year earlier, with the biggest drops concentrated in producers of coal, oil and metals, the National Bureau of Statistics said Monday in Beijing. A lot of these industries are state-owned enterprises, with weak productivity, said investment analysts.
The auto sector (Volkswagon) and mining sector (Glencore) woes in Europe are also affecting the TSX. Glencore has laid off 3,800 workers in Zambia amid tanking copper prices.
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