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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