TSX Plummets On Global Cues, Commodity Weakness -- Canadian Commentary

(RTTNews) - Canadian stocks plummeted to end at a two-year low on Monday, tracking some sharply declining global equity markets on continued worries over a global economic slowdown led by some soft data from China. The massive fall was led by the mining, healthcare, energy and financial sectors, even as commodity prices dived sharply. All sectors of the main index ended in the red.

Some weak economic data from China overnight soured the mood among investors globally. Data showed a decline in Chinese industrial profit, a further sign that the once-dynamic economy might be in significant trouble. Concerns over China have sparked weakness in commodity prices.

Markets in Europe ended significantly lower at the start of the new trading week, with concerns over China after some disappointing economic data.

Markets in the United States were also under pressure and closed sharply lower on China concerns.

Markets were also disappointed by some weaker than expected U.S. housing data. The Dow Jones Industrial Average closed down 1.92 percent, the Nasdaq ended down 3.04 percent, and the S&P 500 dropped 2.6 percent.

Consumer spending rose a little more than economists had predicted last month, according to new government statistics released Monday. This is despite a slower-than-expected expansion in income. Personal income also increased during the month.

The National Association of Realtors' pending home index, a measure of strength in the housing market, unexpectedly declined in August, raising concerns that home sales might be poised for a decline in the near future.

The benchmark S&P/TSX Composite Index closed Monday at 13,004.58, down 373.99 points or 2.80 percent. The index scaled an intraday high of 13,267.91 and a low of 13,004.58.

On Friday, the index closed up 39.90 points or 0.30 percent, at 13,378.57. The index scaled an intraday high of 13,468.75 and a low of 13,350.66.

Gold futures ended lower tracking declining global equity markets on worries of global economic slowdown with further soft data from China strengthening the fear.

The Gold Index dropped 4.55 percent, as gold for December delivery fell $13.90 or 1.2 percent, to settle at $1,131.70 an ounce on the New York Mercantile Exchange Monday.

Among gold stocks, Yamana Gold Inc. (YRI.TO) fell 5.53 percent, Goldcorp Inc. (G.TO) shed 6.64 percent, and Eldorado Gold (ELD.TO) dropped 6.47 percent.

Kinross Gold Corp. (K.TO) lost 4.02 percent, while Barrick Gold (ABX.TO) declined 4.11 percent.

The Capped Materials Index fell 4.55 percent, as Potash Corp. of Saskatchewan Inc. (POT.TO) dropped 1.93 percent, Agnico Eagle Mines Limited (AEM.TO) shed 4.16 percent, Agrium Inc. (AGU.TO) slipped 3.64 percent and Franco-Nevada Corp. (FNV.TO) fell 2.20 percent.

The Diversified Metals & Mining Index plummeted 9.24 percent, as First Quantum Minerals (FM.TO) plunged 14.99 percent and Teck Resources Limited (TCK-B.TO) dived 8.74 percent.

Lundin Mining Corporation (LUN.TO) fell 6.30 percent, while HudBay Minerals Inc. (HBM.TO) plunged 12.26 percent.

The heavyweight Financial Index shed 1.31 percent, as Royal Bank of Canada (RY.TO) fell 0.78 percent and National Bank of Canada (NA.TO) shed 1.08 percent.

Toronto-Dominion Bank (TD.TO) fell 0.97 percent, Bank of Nova Scotia (BNS.TO) dropped 1.20 percent, Canadian Imperial Bank Of Commerce shed 0.74 percent, and Bank of Montreal (BMO.TO) surrendered 0.97 percent.

Crude oil prices ended sharply lower on demand growth concerns with economic reports worldwide suggesting a slowdown globally, even as stock markets in U.S. and Europe plunged.

The Energy Index fell 2.64 percent, with U.S. crude oil futures for November delivery plunging $1.27 or 2.8 percent, to settle at $44.43 a barrel on the New York Mercantile Exchange Monday.

Among energy stocks, Crescent Point Energy Corp. (CPG.TO) dropped 3.93 percent, Canadian Natural Resources Limited (CNQ.TO) shed 2.79 percent, and Canadian Oil Sands (COS.TO) dived 7.87 percent.

Cenovus Energy (CVE.TO) fell 1.49 percent, while Baytex Energy Corp. shed 3.08 percent. Encana Corp. (ECA.TO) surrendered 5.32 percent, while Suncor Energy (SU.TO) dipped 1.34 percent.

The Capped Health Care Index slumped 10.80 percent, after Valeant Pharmaceuticals International (VRX.TO) dived 16.30 percent. According to Bloomberg, members in the U.S. House demanded the company be issued a subpoena for evidence relating to drug price increases.

Extendicare Inc. (EXE.TO) fell 1.0 percent, and Concordia Healthcare Corp. (CXR.TO) slumped 25.43 percent.

The Capped Information Technology Index shed 2.07 percent, as BlackBerry (BB.TO) fell 2.43 percent, Descartes Systems Group (DSG.TO) dipped 0.62 percent, and Constellation Software (CSU.TO) declined 4.34 percent.

The Capped Telecommunication Index dipped 0.06 percent, as TELUS Corp. (T.TO) slipped 0.21 percent, Rogers Communication (RCI-B.TO) dropped 0.02 percent and BCE Inc. (BCE.TO) shed 0.46 percent.

The Capped Industrials Index dropped 1.79 percent, as Bombardier (BBD-B.TO) fell 0.63 percent and Finning International Inc. (FTT.TO) down 2.26 percent

AutoCanada (ACQ.TO) dropped 1.97 percent. The company announced that it has agreed to buy the operating assets of Grove Dodge Chrysler Jeep Ltd.

DHX Media (DHX.B.TO) fell 3.41 percent, after its full year 2015 revenues rose 127 percent to $264.0 million, from $116.1 million in 2014. The company also increased its quarterly dividend by 7.1 percent.

On the economic front, the National Association of Realtors' measure of strength in the U.S. housing market unexpectedly declined for August, raising concerns that home sales figures might be poised for a decline in the near future. The National Association of Realtors' pending home index fell 1.5 percent in August. Economists expected a 0.5 percent increase for the month.

Consumer spending rose a little more than economists had predicted last month, according to new government statistics released Monday. This came despite a slower-than-expected expansion in income. Data released by the U.S. Department of Commerce showed that personal spending rose by 0.4 percent in August. Economists had expected the figure to rise by 0.3 percent.

Personal income in the U.S. also increased during the month. The figures showed a 0.3 percent advance during August, below expectations of a 0.4 percent increase.

China's industrial profits declined in August as product prices continued to decrease, the National Bureau of Statistics reported Monday. Industrial profits fell 8.8 percent in August from a year ago, following a 2.9 percent drop in July.

England/Wales house price growth eased to a 21-month low in August, data from Land Registry showed Monday. House prices advanced 4.2 percent year-on-year in August, which was the slowest growth since November 2013, when it climbed 3.5 percent. In July, house prices rose 4.6 percent and by 4.9 percent in June.