TSX Ends Notably Lower On Growth Worries

(RTTNews) - Canadian shares ended notably lower on Thursday, tracking cues from U.S. and European markets. Stocks tumbled on mounting worries about outlook for global growth on disappointing U.S. and Chinese economic data and lowering of revenue forecast by world's largest technology company Apple.

U.S.-China trade tensions, Brexit uncertainty and political wrangling in Washington over federal government funding of a border wall also weighed on sentiment.

The partial government shutdown in the U.S. entered its 13th day as political stalemate continues. According to reports, the Democrats intend to move forward with plans to reopen the government without providing funding for the wall, although the White House has called the plan a "non-starter."

U.S. President Trump indicated the partial government shutdown will continue for "as long as it takes," standing by his demand for $5 billion for the border wall.

The benchmark S&P/TSX Composite Index ended down 134.41 points, or 0.94%, at 14,212.75. The index scaled a low of 14,155.27 and a high of 14,297.89 in the session.

On Wednesday, the index ended up 24.30 points, or 0.17%, at 14,347.16.

Information technology shares declined sharply, dragging the Capped Information Technology Index down by nearly 4%. Shopify Inc. (SHOP.TO) declined by about 6.5%. Constellation Software (CSU.TO), CGI Group (GIB.A.TO), Open Text Corporation (OTE.TO), BlackBerry (BB.TO), Descartes Systems Group Inc. (DSG.TO), Kinaxis Inc. (KXS.TO), Celestica Inc. (CLS.TO), Enghouse Systems (ENGH.TO) and Sierra Wireless Inc. (SW.TO) lost 2 to 4.5%.

The Capped Financial Index ended nearly 1% down. Royal Bank of Canada (RY.TO) and Toronto-Dominion Bank (TD.TO) lost 1.1% and 1.4%, respectively. Bank of Nova Scotia (BNS.TO), Bank of Montreal (BMO.TO), Canadian Imperial Bank of Commerce (CM.TO) and National Bank of Canada (NA.TO) ended lower by 0.3 to 1%.

The Capped Industrials Index shed 1.89%. Canadian Pacific Railway (CP.TO) declined more than 3%, Canadian National Railway (CNQ.TO) ended 1.7% down, Thomson Reuters Corporation (TRI.TO) ended lower by 2.1% and Air Canada (AC.TO) declined by about 2.8%.

The Capped Healthcare Index eased by 1.4%. Canopy Growth Corporation (WEED.TO) ended 3.8% down and Aurora Cannabis Inc. (ACB.TO) declined 2.5%. Aphria Inc. (APHA.TO) and Extendicare (EXE.TO) also ended notably lower.

The Capped Consumer Discretionary Index shed 1.77%. Magna International Inc. (MG.TO) ended 3.7% down, Gildan Actiwear Inc. (GIL.TO) shed about 2.4%, The Stars Group (TSGI.TO) ended nearly 2% down and Canada Goose Holdings Inc. (GOOS.TO) lost 4.6%.

The Materials index declined 1.03%. Nutrien (NTR.TO) lost 3.2%, Barrick Gold Corporation (ABX.TO) ended 1.3% down, Teck Resources (TECK.B.TO) plunged more than 6% and First Quantum Minerals (FM.TO) plunged 9%. Kirkland Lake Gold (KL.TO), Agnico Eagle Mines (AEM.TO) and Wheaton Precious Metals Corp. (WPM.TO) gained 1.4 to 1.9%.

The Energy Index ended marginally down. Imperial Oil (IMO.TO) shed about 1.8% and PrairieSky Royalty (PSK.TO) ended 1.3% down.

Hexo Corp. (HEXO.TO) jumped more than 6.5%, Crescent Point Energy Corp. (CPG.TO) ended nearly 1% up and B2Gold Corp (BTO.TO) added about 1%.

U.S. stocks ended sharply lower on growth concerns, revenue warning from Apple and political uncertainty. The Dow tumbled 660.02 points or 2.8%, the Nasdaq plunged 202.43 points or 3% and the S&P 500 slumped 62.14 points or 2.5%.

In economic news from U.S., a report from the Institute for Supply Management showed much bigger than expected slowdown in the pace of growth in U.S. manufacturing activity in the month of December. The ISM said its purchasing managers index tumbled to 54.1 in December after rising to 59.3 in November, slumping its lowest level since hitting 53.4 in November of 2016. Economists had expected the index to show a more modest drop to a reading of 57.9.

Meanwhile, a report from payroll processor ADP said private sector employment surged up by 271,000 jobs in December after climbing by a downwardly revised 157,000 jobs in November. Economists had expected an increase of about 178,000 jobs compared to the addition of 179,000 jobs originally reported for the previous month.

Stock markets across the Asia-Pacific region moved mostly lower on Thursday. The major European markets also moved to the downside on the day. While the U.K.'s FTSE 100 Index dropped by 0.6%, the German DAX Index and the French CAC 40 Index tumbled by 1.6% and 1.7%, respectively.

In commodities, Crude oil futures for February ended up $0.55, or 1.2%, at $47.09 a barrel.

Gold futures for February ended up $10.70, or 0.8%, at $1,294.80 an ounce, the highest settlement since mid June 2018.

Silver futures for March settled at $15.797 an ounce, up $0.148 from previous close. Copper futures for March ended at $2.568 per pound, down $0.055 from Thursday's close.