TSX Ends Sharply Lower

(RTTNews) - The Canadian stock market suffered one of its worst setbacks in recent times on Monday, with investors going on a selling spree amid rising concerns about global economic growth and falling crude oil prices.

Worries about global economic slowdown increased after the latest batch of economic data from U.S. showed a deterioration in homebuilders' confidence in the month of December. A report from New York Federal Reserve, which showed a much bigger than expected slowdown in the pace of growth in regional manufacturing activity in December also weighed on the market.

Also, markets are worried that if the U.S.-China trade disputes are not resolved before the expiry of the 90-day truce between the two countries, global economy might go off track.

Investors look ahead to the Federal Reserve's monetary policy on Wednesday and the Chinese President Xi Jinping speech on economic reforms tomorrow.

The benchmark S&P/TSX Composite Index ended down 232.42 points, or 1.59%, at 14,362.65, not far off the day's low of 14,323.74. The index scaled a high of 14,577.60. On Friday, the index ended down 155.28 points, or 1.05%, at 14,595.07.

In Canadian economic news, a report from Statistics Canada said foreign investment in Canadian securities dropped to $4.0 billion in October, down from $7.8 billion in the preceding month. Meanwhile, Canadian investment in foreign securities rose to a 9-month high, at $14.9 billion.

The Canadian Real Estate Association said home sales via Canadian MLS Systems dropped by 2.3% in November, after declining by 1.7% a month earlier.

The mood was so bearish that all the sectoral indices ended in negative territory today. The Capped Healthcare Index lost over 4.5%, with key shares from the sector going down sharply.

Energy, information technology, bank, consumer discretionary, consumer staples, industrials, real estate and utilities shares ended mostly lower. Materials shares found some support thanks to strong gold prices.

Aurora Cannabis Inc. (ACB.TO), Crescent Point Energy (CPG.TO), Baytex Energy Corp. (BTE.TO), Cenovus Energy (CVE.TO), Canadian Natural Resources (CNQ.TO), First Quantum Minerals (FM.TO) and Largo Resources (LGO.TO) lost 4 to 9 percent.

Gold stocks were in demand. Eldorado Gold Corporation (ELD.TO), Wesdome Gold Mines (WDO.TO), Yamana Gold (YRI.TO), New Gold (NGD.TO) and IAM Gold (IMG.TO) gained 6 to 11%.

In other markets, U.S. stocks ended sharply lower on growth concerns. The Dow and the S&P 500 both lost by 2.1%, while the Nasdaq tumbled 2.3%.

According to a report on housing market, a report said the NAHB/Wells Fargo Housing Market Index dropped to 56 in December after tumbling to 60 in November. Economists had expected the index to inch up to 61.

With the unexpected monthly decrease, the housing market index tumbled to its lowest level since hitting 54 in May of 2015. NAHB Chief Economist Robert Dietz called the housing slowdown an "early indicator of economic softening."

A separate report from the New York Federal Reserve showed a much bigger than expected slowdown in the pace of growth in regional manufacturing activity in December.

The European markets ended solidly in negative territory. Shares of retailers were under heavy pressure Monday after a profit warning from British online retailer ASOS.

Asian markets edged up marginally thanks to bargain hunting in several stocks.

In commodities, crude oil futures for January ended down $1.32, or 2.6%, at $49.88 a barrel, the lowest settlement since early October 2017.

Gold futures for February ended up $10.40, or 0.8%, at $1,251.80 an ounce.

Silver futures for March ended at $14.759 an ounce, up $0.122 from Friday's close.

Copper futures for March settled at $2.754 per pound, declining from Friday's close of $2.763 per pound.