Canadian shares tumbled as energy producers eased back with falling crude prices. The resource-heavy benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 1.4 percent. Five shares declined for every stock that advanced as all of the ten main share groups were in the negative territory.
The energy sector, the main index's second most heavily weighted group, sank 1.8 percent as oil, Canada’s largest export, retreated on signs of weaker Chinese demand.
Bonterra Energy (TSE:BNE) sank 3.2 percent to C$31.85 after saying it plans to sell up to 1.2 million shares at C$32 each to raise up to C$38.4 million. The oil and gas company plans to use half of the proceeds to fund drilling and half to reduce debt.
Ballard Power Systems (NASDAQ:BLDP) jumped 14.2 percent to C$2.41 after the Canadian fuel-cell maker received a $10 million contract to provide fuel cell products and technology for 33 fuel cell-powered buses in two Chinese cities.
Sherritt International (TSE:S), the Canadian nickel and cobalt mining company, slipped 1.3 percent as its workers at its nickel project in Madagascar may go on strike.
Suncor Energy (TSE:SU), Canada's largest oil sands producer, skidded 1.9 percent to C$35.32. Enbridge (TSE:ENB), Canada's largest pipeline company, slipped 3.3 percent to C$56.43.
Light, sweet crude for July delivery recently fell 1.3 percent to $58.36 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 1 percent to $62.66 a barrel on ICE Futures Europe.
China imports plunged 18 percent in May, the most in three months, while exports fell for a third straight month, underscoring weakening growth in the Chinese economy. The country is Canada’s second-largest trading partner after the U.S.
The materials sub-index, which includes mining shares, surrendered 0.7 percent as gold steadied after a three-day drop. Goldcorp (TSE:G), Canada’s largest gold miner by market value, slipped 0.1 percent to C$21.41. Barrick Gold (TSE:ABX), the second-largest, slumped 0.4 percent to C$14.18.
Spot gold was flat at $1,171 an ounce, while U.S. gold futures for August delivery were up $3.50 at $1,171 an ounce.
Financials, the index's most heavily weighted sector, lost 1.3 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, eased back 1.6 percent to C$78.35. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, dipped 1.5 percent to C$53.54.
Cogeco Cable (TSE:CCA) advanced 3 percent to $68.04 after saying its U.S.-based Atlantic Broadband unit has agreed to buy the cable system owned by MetroCast Communications of Connecticut for $200 million. MetroCast Connecticut is expected to post 2015 revenue of about $45 million and adjusted EBITDA of about $21 million.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) fell 0.7 percent to 685.35 at 12:47 p.m. in Toronto.
In economic news, anadian housing starts jumped to the highest level in nearly a year in May, data today showed, an unexpected move that signaled the country's housing boom still has life and that the economy may strengthen in the second quarter.
In the U.S. market, shares eased today, one session after an upbeat May jobs report bolstered expectations for higher interest rates later this year. The S&P 500 (INDEXSP:.INX) dropped 0.3 percent to 2,085 at 12:01 p.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) fell 0.3 percent to 17,802, while the tech-heavy Nasdaq 100 (INDEXNASDAQ:NDX) skidded 0.7 percent to 4,445.83. Most followed shares included Deutsche Bank, Stifel Financial, Iron Mountain, LendingClub, Wal-Mart, American Airlines, Sears Holdings, McDonald’s, and Vail Resorts.