Canadian shares extended losses for a seventh session as worries that sluggish growth in Europe will weaken demand nudged down commodities producers.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 1.1% to 13,196.06 at 1:36 p.m. in Toronto. Four shares declined for every issue that advanced as nine out of
the ten share groups were in negative territory.
Data showed industrial production in the euro area fell more than economists forecast.
The financials group, which accounts for approximately 36% of the main measure, more than any other group, sank 1.5%. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, dropped 1.4% to C$74.94. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, dropped 1.3% to C$53.99.
Manulife Financial (TSE:MFC) lost 2.4% after reporting a 43% drop in third-quarter profit blamed on its falling oil and gas investments.
The energy sector, the main index's second most heavily weighted group, declined 1.2% as crude prices tumbled to 2½-month lows.
Encana (TSE:ECA) rose 2.3% to C$10.12 after the Canadian oil and natural gas producer reported an increase in oil production and said it is speeding up spending in the Permian basin in Texas.
Suncor Energy (TSE:SU), Canada's biggest energy company, decreased 1.4% to C$37.66. Canadian Natural Resources (TSE:CNQ), the country's largest heavy-oil producer, declined 1% to C$31.41.
U.S. crude futures fell $1.09 to $41.84 a barrel and also hit the lowest intraday level since August 27.
The materials sub-index, which includes mining shares, was the only advancer with a 0.6% gain even as gold dipped to a near 6-year low.
Goldcorp (TSE:G), Canada’s largest gold miner by market value, rose 1.6% to C$16.02. Barrick Gold (TSE:ABX), Canada’s second-largest gold miner, added 4% to C$10.05.
U.S. gold futures for December delivery dropped $9.30 an ounce at $1,075.80.