TSX Ends Sharply Lower On Growth Worries

(RTTNews) - The Canadian stock market ended sharply lower on Tuesday as weak economic data from across the globe, including a report showing a contraction in U.S. manufacturing activity, raised fears of a recession and prompted investors to exit counters. Weak crude oil prices weighed as well.

The benchmark S&P/TSX Composite Index, which advanced to 16,707.54 in early trades, gaining nearly 50 points in the process, retreated soon and then kept sliding lower and lower as the day progressed. It finally ended the day with a loss of 210.97 points, or 1.27%, at 16,447.66, slightly off the day's low of 16,429.57.

On Monday, the index ended down 35.64 points, or 0.21%, at 16,658.63, the day's low.

Shares from healthcare sector were among the most prominent losers. The Capped Healthcare Index shed as much as 5.41%, with Bausch Health Companies (BHC.TO) losing 10%. Aurora Cannabis (ACB.TO) declined 6.5%, Canopy Growth Corp (WEED.TO) shed nearly 5% and Hexo Corp (HEXO.TO) ended down 3%. Aphria Inc. (APHA.TO) ended lower by 2.6%, while Extendicare Inc. (EXE.TO) eased 1.5%.

The Capped Energy Index declined 3.24%. Whitecap Resources (WCP.TO), Kelt Exploration (KEL.TO), Nuvista Energy (NVA.TO), Seven Generations Energy (VII.TO) and Baytex Energy Corp (BTE.TO) lost 5 to 7.2%.

Vermilion Energy (VET.TO), Enerplus Corp (ERF.TO), Husky Energy (HSE.TO), ARC Resources (ARX.TO), Parex Resources (PXT.TO), Tourmaline Oil Corp (TOU.TO), Crescent Point Energy (CPG.TO), PrairieSky Royalty (PSK.TO) and Encana Corp (ECA.TO) ended lower by 2.8 to 4.7%.

The Capped Industrials Index shed more than 2%. Bombardier Inc. (BBD.B.TO) plunged 10.6% and SNC-Lavalin (SNC.TO) declined 6.2%. Mullen Group (MTL.TO) and Ag Growth International (AFN.TO) declined by 4.8% and 4.6%, respectively. Canadian National Railway (CNR.TO), New Flyer Industries (NFI.TO), Transcontinental Inc. (TCL.A.TO) and Canadian Pacific Railway (CP.TO) also declined sharply.

In the financial space, Toronto-Dominion Bank (TD.TO), Fairfax Financial Holdings (FFH.TO), Manulife Financial (MFC.TO) and CDN Western Bank (CWB.TO) declined sharply.

Yamana Gold (YRI.TO), B2Gold Corp (BTO.TO), Kinross Gold Corp (K.TO) and Detour Gold Corp (DGC.TO) bucked the trend and closed with strong gains.

In economic news, Canada's real gross domestic product came in unchanged for the month of July.

Meanwhile, the seasonally-adjusted IHS Markit Canada Manufacturing Purchasing Managers' Index came in with a reading of 51.0 in September, up from 49.1 a month earlier.

U.S. stocks ended firmly in negative territory after a report from the Institute for Supply Management showed a continued contraction in U.S. manufacturing activity in the month of September. The ISM said its purchasing Managers Index dropped to 47.8 in September, the lowest level since hitting 46.3 in June 2009, the last month of the Great Recession. The index stood at 49.1 in August. Economists had expected the index to inch up to 50.1.

The Dow ended 1.3% down, the Nasdaq declined 1.1% and the S&P 500 eased 1.2%.

Stock markets across the Asia-Pacific region moved mostly higher, while major European markets closed notably lower.

In commodities, West Texas Intermediate Crude oil futures for November ended down $0.45, or about 0.8%, at $53.62 a barrel, after having advanced to $54.84 earlier in the session.

Gold futures for December, which dropped to $1,465.00 earlier in the session, ended up $16.10, or about 1.1%, at $1,489.00 an ounce, after rising to a high of $1,493.50 intraday.

Silver futures for December ended up $0.304, at $17.302 an ounce, while Copper futures for December settled at $2.5605 per pound, down $0.0180 from previous close.