Canadian shares dropped for the fourth session in five as disappointing data from Japan and New York nudged down banking shares.
The benchmark Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.4% to 14,218.50 at 11:56 a.m. in Toronto. Five shares declined for every three issues that advanced as nine out of ten share groups were in the negative territory.
Japan's economy contracted in the second quarter as exports declined and consumers cut back on spending, data showed. Manufacturing activity in New York state plummeted in August to its weakest since 2009.
Financials, the index's most heavily weighted sector, were the biggest lagger with a 1.1% decline. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, dropped 1.2% to C$75.04. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, sank 0.9% to C$51.42.
Brookfield Infrastructure (TSE:BIP.UN) skidded 1.6% to C$54.10. The company backed by Canada’s largest alternative asset manager agreed to buy Asciano (OTCMKTS:AANOF), an Australian rail freight firm, for about A$12bn ($8.84bn) including debt.
The energy sector, the main index's second most heavily weighted group, fell 1% as oil, Canada’s largest export, kicked off the week in the red. Suncor Energy (TSE:SU), Canada's largest oil sands producer, sank 1.1% to C$36.86. Canadian Natural Resources Limited (TSE:CNQ), the nation’s second-largest energy producer, decreased 0.5% to C$30.34.
Light, sweet crude for September delivery recently traded down 0.8% at $42.15 a barrel on the New York Mercantile Exchange.
The materials sub-index, which includes mining shares, advanced 1.8% as gold steadies on Monday.
Goldcorp (TSE:G), Canada’s largest gold miner by market value, rose 3.4% to C$19.31. Barrick Gold (TSE:ABX) gained 2% to C$10.27. The world’s largest bullion miner by production is scrapping its unusual “co-president” management structure less than a year after it went into effect, as part of its efforts to become a more efficient gold miner.
Spot gold was up 0.5 percent at $1,119.33 an ounce, while U.S. gold futures for December delivery were up $5.60 an ounce at $1,118.30.
BCE (TSE:BCE) rose 0.4% to C$53.96, reversing an earlier loss. Canada’s second-largest wireless carrier said on Friday it’s selling its remaining stake in the Toronto-based Globe and Mail newspaper to Canada’s Thomson family.
In economic news, Canadian consumer confidence rose for the first time in seven weeks, weekly polling shows, as worries about personal finances and the economic outlook abated. The Bloomberg Nanos Canadian Confidence Index rose to 52.3, from 52 a week earlier, which was the lowest since April 2013.
In the U.S. market, U.S. stocks shrugged off earlier pessimism and pushed higher on Monday as a strong reading from the housing sector overshadowed dismal manufacturing report from the New York area.