Canadian stocks fell, extending a weekly drop, as banks declined on concern the global economic recovery is slowing.
Toronto-Dominion Bank (TD), Canada’s second-largest lender by assets, lost 2.7 percent after Citigroup Inc. and JPMorgan Chase & Co. cut their U.S. growth forecasts. Penn West Petroleum Ltd., a western Canadian energy producer, decreased 3.2 percent as crude oil headed for its fourth-straight weekly retreat. Barrick Gold Corp. (ABX), the world’s biggest gold producer, rose 1.3 percent as the metal extended a record.
The Standard & Poor’s/TSX Composite Index fell 47.72 points, or 0.4 percent, to 12,138.99 at 12:46 p.m. in Toronto, extending its weekly decline to 3.2 percent.
“The market has been reacting to the financial situation in Europe and the global economic slowdown,” Murray Leith, a money manager at Odlum Brown Ltd. in Vancouver, said in a telephone interview. The firm oversees C$7.5 billion ($7.6 billion). “We’ve had a big economic slowdown in North America, driven by the United States.”
The S&P/TSX lost 5.9 percent this month through yesterday as oil plunged 14 percent. The fuel retreated as data on U.S. housing and employment and European gross domestic product reflected a slowing economic rebound. Energy companies make up 26 percent of Canadian stocks by market value, according to data compiled by Bloomberg.
In a note to clients today, JPMorgan said U.S. GDP will increase one-third as much as it had formerly forecast in the first quarter of 2012. Citigroup cut its 2012 U.S. economic- growth estimate to 2.1 percent from 2.7 percent.
Banks Decline
The S&P/TSX Banks Index fell to head for its biggest two- day tumble since May 2009.
TD, which has more than 1,000 U.S. branches, dropped 2.7 percent to C$72.03. Royal Bank of Canada (RY), its bigger rival, slipped 2 percent to C$49.45. Bank of Nova Scotia (BNS), Canada’s third-largest lender by assets, declined 3.2 percent to C$50.80. Manulife Financial Corp. (MFC), the country’s biggest insurer, lost 1.8 percent to C$12.71.
Peter Routledge, an analyst at National Bank of Canada, cut his earnings estimates for the six largest banks after markets closed yesterday, citing economic pessimism in a note to clients.
An index of S&P/TSX energy stocks retreated after plunging 4.9 percent yesterday. Penn West dropped 3.2 percent to C$17.74. Precision Drilling Corp. (PD), Canada’s largest drilling company by market value, declined 3.4 percent to C$11.99 to extend its two- day slump to 13 percent. Bankers Petroleum Ltd. (BNK), an oil and gas producer with operations in Albania, fell for a sixth day, sinking 5 percent to C$4.16.
Gold Rises
Gold futures rallied as much as 3.3 percent to head for their seventh-straight weekly advance as the U.S. dollar slid to a postwar low against the Japanese yen.
Barrick gained 1.4 percent to C$49.98. Goldcorp Inc. (G), the world’s second-largest gold producer by market value, climbed 2 percent to C$50.46. Silver Wheaton Corp. (SLW), Canada’s fourth- largest precious-metals company by market value, rallied 4.8 percent to C$38.59 as silver jumped as much as 4.8 percent.
RIM gained 6 percent to C$27.03 after Peter Misek, an analyst at Jefferies & Co., raised his rating on the stock to “hold” from “underperform.” RIM could sell its patents for about $2 billion, Misek wrote in a note to clients. The shares have soared 11 percent this week, the most since October.
Source: http://www.bloomberg.com
Toronto-Dominion Bank (TD), Canada’s second-largest lender by assets, lost 2.7 percent after Citigroup Inc. and JPMorgan Chase & Co. cut their U.S. growth forecasts. Penn West Petroleum Ltd., a western Canadian energy producer, decreased 3.2 percent as crude oil headed for its fourth-straight weekly retreat. Barrick Gold Corp. (ABX), the world’s biggest gold producer, rose 1.3 percent as the metal extended a record.
The Standard & Poor’s/TSX Composite Index fell 47.72 points, or 0.4 percent, to 12,138.99 at 12:46 p.m. in Toronto, extending its weekly decline to 3.2 percent.
“The market has been reacting to the financial situation in Europe and the global economic slowdown,” Murray Leith, a money manager at Odlum Brown Ltd. in Vancouver, said in a telephone interview. The firm oversees C$7.5 billion ($7.6 billion). “We’ve had a big economic slowdown in North America, driven by the United States.”
The S&P/TSX lost 5.9 percent this month through yesterday as oil plunged 14 percent. The fuel retreated as data on U.S. housing and employment and European gross domestic product reflected a slowing economic rebound. Energy companies make up 26 percent of Canadian stocks by market value, according to data compiled by Bloomberg.
In a note to clients today, JPMorgan said U.S. GDP will increase one-third as much as it had formerly forecast in the first quarter of 2012. Citigroup cut its 2012 U.S. economic- growth estimate to 2.1 percent from 2.7 percent.
Banks Decline
The S&P/TSX Banks Index fell to head for its biggest two- day tumble since May 2009.
TD, which has more than 1,000 U.S. branches, dropped 2.7 percent to C$72.03. Royal Bank of Canada (RY), its bigger rival, slipped 2 percent to C$49.45. Bank of Nova Scotia (BNS), Canada’s third-largest lender by assets, declined 3.2 percent to C$50.80. Manulife Financial Corp. (MFC), the country’s biggest insurer, lost 1.8 percent to C$12.71.
Peter Routledge, an analyst at National Bank of Canada, cut his earnings estimates for the six largest banks after markets closed yesterday, citing economic pessimism in a note to clients.
An index of S&P/TSX energy stocks retreated after plunging 4.9 percent yesterday. Penn West dropped 3.2 percent to C$17.74. Precision Drilling Corp. (PD), Canada’s largest drilling company by market value, declined 3.4 percent to C$11.99 to extend its two- day slump to 13 percent. Bankers Petroleum Ltd. (BNK), an oil and gas producer with operations in Albania, fell for a sixth day, sinking 5 percent to C$4.16.
Gold Rises
Gold futures rallied as much as 3.3 percent to head for their seventh-straight weekly advance as the U.S. dollar slid to a postwar low against the Japanese yen.
Barrick gained 1.4 percent to C$49.98. Goldcorp Inc. (G), the world’s second-largest gold producer by market value, climbed 2 percent to C$50.46. Silver Wheaton Corp. (SLW), Canada’s fourth- largest precious-metals company by market value, rallied 4.8 percent to C$38.59 as silver jumped as much as 4.8 percent.
RIM gained 6 percent to C$27.03 after Peter Misek, an analyst at Jefferies & Co., raised his rating on the stock to “hold” from “underperform.” RIM could sell its patents for about $2 billion, Misek wrote in a note to clients. The shares have soared 11 percent this week, the most since October.
Source: http://www.bloomberg.com
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