(MENAFN- ProactiveInvestors - N.America) Canadian shares fell for a second day, sending their benchmark gauge to its lowest in more than a week, as bets the U.S. Federal Reserve will taper its stimulus program hightened
The resource-sensitive Standard & Poor's/TSX Composite Index (TSE:OSPTX) tumbled 1.6 percent to 13,706.74 at 11:41 a.m. in Toronto. Earlier, the measure touched 13,698.31, the lowest level since Jan. 15. Almost 14 stocks lost for every share that gained.
Concerns about the Fed, combined with soft economic data from China, nudged down the prices of some commodities, including oil and copper
The materials sub-index, which includes mining shares, retreated 2.3 percent as copper futures headed for the biggest weekly loss in more than two months. First Quantum Minerals Ltd. (TSE:FM), a copper miner, decreased 5.1 percent to C$19.22
Copper futures for delivery in March slid 0.2 percent to $3.28 a pound at 11:04 a.m. on the Comex in New York
Barrick Gold Corp. (TSE:ABX), the world's largest producer of the metal, dropped 1.9 percent to C$21.04 as it provided preliminary guidance at an investor conference that it expects to produce less gold this year
The financials group, which accounts for 35 percent of the main measure, more than any other group, fell 1.5 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, surrendered 1.4 percent to C$70.42. Toronto-Dominion Bank (TSE:TD), the second-largest, gave up 0.9 percent to C$97.89
The energy sector, the main index's second most heavily weighted group, skidded 1.6 percent as oil, Canada's largest export, fell for the first time in five days. Suncor Energy Inc. (TSE:SU), the nation's largest energy company by market value, gave back 1.6 percent to C$37.19. Enbridge Inc. (TSE:ENB), Canada's largest pipeline company, tanked 0.8 percent to C$46.83
West Texas Intermediate crude for March delivery dropped 0.6 percent to $96.72 a barrel at 11:49 a.m. on the New York Mercantile Exchange.
BlackBerry Ltd. (TSE:BB) (NASDAQ:BBRY), the beleaguered Canadian smartphone maker, slumped 6 percent to C$10.90 on reports that the U.S. Department of Defense did not order its devices
Open Text Corp. (TSE:OTC), a business-software maker, climbed 12 percent to $112.07. The company said license revenue beat expectations and announced plans for a two-for-one stock split
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) plunged 1.9 percent to 965.11 at 11:51 a.m. in Toronto. Africa Oil Corp. (CVE:AOI), the heaviest stock in the gauge, sank 4.8 percent to C$8.80.
In economic news, Canada's December inflation rate accelerated less than economists forecast, leaving it near the bottom of the central bank's target band and reinforcing policy-maker warnings that price gains will be sluggish. The consumer price index rose 1.2 percent in December from a year earlier following November's 0.9 percent pace, Statistics Canada said today. The core rate, which excludes eight volatile products, climbed an annual 1.3 percent after a gain of 1.1 percent in the prior month. Economists forecast that both rates would advance by 1.3 percent, according to Bloomberg
In currency, the Canadian dollar gained 0.2 percent to C$1.1077 against its U.S. counterpart at 10:10 a.m. in Toronto
In the U.S., shares declined as global stock markets fell amid a sell-off in emerging-market currencies. The S&P 500 (INDEXSP:.INX) skidded 1.1 percent at 11:06 a.m. in New York. The 30-member Dow Jones Industrial Average (INDEXDJX:.DJI) slumped 0.9 percent and the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) fell 1.3 percent. Most followed shares included Microsoft, Procter & Gamble, Starbucks, Xerox, Boeing, Kimberly-Clark and Juniper Networks.
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