RTTNews - Toronto's main index has moved sharply lower in Wednesday morning trading, led by resource stocks. The market has followed the lead of U.S. and European stocks.
The S&P/TSX Composite Index has dropped 242.90 or 2.29% to move at 10,345.56. The drop took the index away from the eight-month low seen last week.
Mining stocks are down 4.2% as copper has lost 3.6 cents to $2.26 per pound. Teck Cominco (TCK.B.TO) has declined 5.6% to lead the big names lower.
Falling crude oil prices have dragged energy stocks 3.8% lower. Canadian Natural Resources (CNQ.TO) has dropped 5%, Canadian Oil Sands (COS.UN.TO) is down 4.7%, Suncor (SU.TO) has dropped 4.1% and Encana (ECA.TO) is down 2.9%.
Light sweet crude has plunged $1.65 to $66.88 per barrel. The Energy Information Administration revealed crude inventories unexpectedly increased by 2.9 million barrels in the week ended May 29.
Materials stocks have declined 2.75%. Agrium (AGU.TO) has lost 4.25% announced that its offer to acquire CF Industries Holdings (CF) for US$40.00 in cash and one common share of Agrium for each CF share is its best and final offer.
Gold stocks are down 2.3% as the precious metal has slipped below $980 an ounce again. New Gold (NGD.TO) has lost 3.6% and Goldcorp (G.TO) is down 3.2%.
Eldorado Gold (ELD.TO) is down 3% after the company announced that it has agreed to acquire 57.9 million shares of Sino Gold Mining Ltd from Gold Fields Ltd (GFI) in a private transaction in exchange for Eldorado shares.
Bombardier (BBD-B.TO) has lost 7.3% after it reported that its first quarter net income was US$158 million, compared to US$229 million for the same period last year. Earnings per share were US$0.09, compared to US$0.12 last fiscal year.
WestJet (WJA.TO) has dropped 8.7% after it said its May load factor was down 5.4% and revenue passenger miles dropped 5.8%.
In economic news across the border, Automatic Data Processing said non-farm private employment fell by 532,000 jobs in May following a revised decrease of 545,000 jobs in April. Economists had expected a decrease of about 525,000 jobs compared to the decline of 491,000 jobs originally reported for the previous month.
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