RTTNews - Bay Street stocks remained notably lower in Tuesday afternoon trading, led by weakness in the gold and financial sectors. The Canadian market followed the lead of stocks in the U.S. and Europe.
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 are down 2.8% and materials stocks have lost 2.3% as the precious metal lost $13.30 to close at $927.50. New Gold (NGD.TO) has dropped 4.9%, Eldorado (ELD.TO) has lost 4.1%, Goldcorp (G.TO) has declined 3.6% and Barrick Gold (ABX.TO) has slipped 3.3%
Financials are showing a 2.6% decline as the big six banks are seeing weakness. Bank of Montreal (BMO.TO) is down 3%, National Bank (NA.TO) has lost 2.9% and Royal Bank (RY.TO) is down 2.8%.
Sun Life Financial (SLF.TO) has lost 4.5% 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, TransAlta Corp. (TA.TO) has dropped 5.6% after Credit Suisse downgraded the shares to Neutral from Outperform with a price target of C$25.50.
JLL Partners announced it has made an offer to acquire Patheon (PTI.TO) at a price of US$2.00 cash per share. Patheon stock has lost 1.4%.
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 decrease surprised economists, who had expected the index to edge up to 55.3 from the 54.9 originally reported for the previous month.
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. Economists had been expecting the index to increase to a reading of 39.0.
Earlier, the S&P Case-Shiller Index, a closely watched measure of home prices, showed a 0.6 percent decline from March to April, according to a survey of prices in 20 U.S. cities. This represented a drop of 18.1 percent compared to the same period last year.
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