RTTNews - Toronto stocks turned notably lower in mid-morning trading on Tuesday, following the lead of U.S. stocks. Weakness among metal and financial stocks has led the decline.
The S&P/TSX Composite Index is down 142.20 points or 1.35% to move at 10,334.99. The market had closed higher in each of the last five sessions.
Gold stocks have moved 2.7% lower and materials stocks are down 2.5% as the precious metal dropped $13.20 to $927.50. New Gold (NGD.TO) has dropped 4%, Eldorado (ELD.TO) is down 3.9%, Goldcorp (G.TO) has dropped 3.6% and Agnico-Eagle Mines (AEM.TO) is down 3.2%.
Mining stocks are down 1.5%, as Inmet (IMN.TO) has dropped 1.6% and HudBay (HBM.TO) is down 1.5%. Copper prices have dropped 5.25 cents to $2.26 per pound.
Financials are showing a 1.9% decline. CIBC (CM.TO) is down 2.2% and Bank of Montreal (BMO.TO) has dropped 2%.
Sun Life Financial (SLF.TO) has dropped 5% after the company announced the completion of a public offering in Canada of C$300 million principal amount of Series D Senior Unsecured 5.70% Debentures due 2019. The net proceeds will be used for general corporate purposes, including investments in subsidiaries.
In other corporate news, JLL Partners announced it has made an offer to acquire Patheon (PTI.TO) at a price of US$2.00 cash per share. Patheon stocks is down 2.5%.
According to reports in the Financial Times, talks between Magna International Inc. (MG.A.TO) and Opel have reached snags and Belgium-based RHJ International is nearing a deal to take stake in the General Motors company. Magna shares are up 3.2%.
Statistics Canada reported gross domestic product declined 0.1 percent in April following a 0.3 percent decrease in March and a 0.1 percent drop in February. Economists had been expecting GDP to dip by 0.1 percent.
A separate report showed that industrial product prices fell 1.1 percent in May following a 0.5 percent decrease in April. Economists had been expecting a more modest decrease in industrial product prices of about 0.6 percent.
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