Canadian shares declined on Wednesday after sluggish Chinese inflation data added to worries about the outlook for global growth, nudging down energy producers and miners.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.7% to 13,385.38 at 12:18 p.m. in Toronto.
Two shares declined for every issue that advanced as nine out of ten share groups were in negative territory.
China’s consumer inflation dipped further last month due to lower food prices, adding to what economists say are signs of slack demand and slowing in the world’s second-largest economy.
The TSX's energy sector slid 0.4% as oil fluctuated. Suncor Energy (TSE:SU),
Canada's biggest energy company, rose 0.5% to C$39.15. Enbridge (TSE:ENB), Canada's largest pipeline company, slumped 1.7% to C$49.58.
U.S. crude prices were up 1.5% to $44.53 a barrel, while Brent crude added 0.8% to $47.58.
The materials sub-index, which includes mining shares, surrendered 1.5% as gold fell towards a three-month low. Goldcorp (TSE:G), Canada’s largest gold miner by market value, slipped 1.5% to C$15.59.
Intertape Polymer Group (TSE:ITP) jumped 8.8% to C$16.50 after U.S. hedge funds FrontFour Capital Group and Zelman Capital are agitating for change at the company.
Spot gold was down 0.3 percent at $1,088.15 an ounce, while U.S. gold for December delivery lost $1.00 to $1,086.90 an ounce.
The financials group, which accounts for 36% of the main measure, more than any other group, slid 0.7%.
Brookfield Asset Management (TSE:BAM.A) rose 2% after its offer for Australian stevedoring and rail company Asciano Ltd was narrowly eclipsed by a rival offer from Qube Holdings Ltd.
Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, decreased 0.4% to C$75.73. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, inched up 0.4% to C$54.65.
Amaya (TSE:AYA), the online gambling purveyor, plunged 29% after cutting its revenue and earnings expectations for the year.
In economic news, Canada’s budget watchdog said the outlook is growing more bleak just weeks after Prime Minister Justin Trudeau won power with a pledge to stimulate the country’s struggling economy. The Parliamentary Budget Officer has cut its growth forecasts and projected C$9.3bn in new deficits over the next five years, according to a report published on Tuesday.