Canada Stocks Fall as Commodity Prices Hit Producers

Canada stocks slumped as commodities producers sank to a seven-year low and oil resumed its slide after data showed Chinese industrial profits tumbled.

Equities lost 1.3 percent, for a fourth decline in five days. Raw-materials producers joined a global slide as the Bloomberg World Mining Index plunged to the lowest level since December 2008. Glencore Plc plunged as much as 31 percent in London to an all-time low.

The Standard & Poor’s/TSX Composite Index fell 171.31 points to 13,207.26 at 11:16 a.m. in Toronto, extending declines in September to 4.7 percent. The index is headed for a fifth straight monthly drop and its worst quarter in four years.

Chinese industrial companies reported profits fell 8.8 percent in August from a year earlier, the most since the government began releasing monthly data in 2011. The biggest drops were concentrated in producers of coal, oil and metals, according to a report from Beijing. The Bloomberg Commodity Index, which tracks a basket of prices from live cattle to gold, has plunged 16 percent this year.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza