TSX Tumbles Along With Oil Prices -- Canadian Commentary

(RTTNews) - Canadian stocks were hammered Wednesday as significant weakness emerged in the energy sector.

The S&P/TSX Composite Index was down 111.80 points, or 0.72 percent, to 15,496.98.

Crude oil prices collapsed today, falling by the most in a year, due to another mammoth build in U.S. oil inventories.

The U.S. supply glut has worsened nine weeks in a row, according to government figures.

Crude inventories rose 8.2 million barrels in the week to March 3, compared with analysts' expectations for a 2 million-barrel build. That's the ninth consecutive week oil stockpiles have risen.

April WTI oil plunged $2.86, or 5.4%, to settle at $50.28/bbl, the lowest in 2017.

A stronger dollar also weighed on oil prices after a blockbuster U.S. ADP jobs report cemented calls for an interest rate hike.

Meanwhile, the loonie dropped to its lowest in the year.

BMO Global Asset Management has laid off several portfolio managers and management staff, Reuters reported.

Asset manager Sprott Inc. (SII.TO) launched a hostile US$3.1-billion takeover offer Wednesday for Central Fund of Canada Ltd. (CFCL), Globe and Mail reports. Sprott shares fell 2.2 percent.

Meanwhile, Adidas AG raised its financial outlook through 2020 and announced plans to sell the famous CCM hockey brand. No word yet on a potential buyer. In economic news, Payroll processor ADP said private sector employment in the U.S. increased by much more than expected in February, up by 298,000 jobs after jumping by an upwardly revised 261,000 jobs in January.

Economists had expected employment to climb by about 190,000 jobs.

In Canada, the value of building permits issued by municipalities rose 5.4% to $7.6 billion in January, following two consecutive monthly decreases.