RTTNews - Canadian stocks saw notable weakness on Tuesday as lackluster economic data from the U.S. raised concerns about the economy's recovery. The decline snapped a five-session winning streak for Toronto's main index.
The S&P/TSX Composite Index has 101.86 points or 0.97% to end at 10,374.91. Canadian markets are closed on Wednesday for Canada Day, while U.S. markets are closed Friday for Independence Day.
The Gold Index lost 2.75% while materials stocks fell 2.2% as the precious metal gave up $13.30 to close at $927.50. New Gold (NGD.TO) has dropped 4.9%, Eldorado (ELD.TO) lost 3.7%, Goldcorp (G.TO) fell 3.4%, Barrick Gold (ABX.TO) lost 3% and Agnico-Eagle Mines (AEM.TO) dropped 2.75%.
Financials lost 2.1%, with Royal Bank (RY.TO) and National Bank (NA.TO) losing about 2.3% apiece. Toronto-Dominion (TD.TO) fell 2%, Bank of Montreal and Scotiabank (BNS.TO) declined about 1.9% and CIBC (CM.TO) fell 1%.
Sun Life Financial (SLF.TO) fell 4.35% 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, TransAlta Corp. (TA.TO) dropped 6.7% after Credit Suisse downgraded the stock to Neutral from Outperform with a price target of C$25.50.
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.
Across the border, the Conference Board said its consumer confidence index fell to 49.3 in June from a revised 54.8 in May. The ISM - Chicago said its index of activity in the manufacturing sector jumped to 39.9 in June from 34.9 in May, although a reading below 50 indicates a continued contraction. Earlier, the S&P Case-Shiller Index showed a 0.6 percent decline from March to April.
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