North American equity markets were sharply lower to start the trading week amid more evidence of a continuing slowdown in China, the world’s second-largest economy.
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Oil and metals prices fell after Chinese government statistics showed that profits at the country’s industrial companies plunged 8.8 per cent last month. Nine of the index’s 10 main groups were in the red, with consumer staples the lone gainer.
Elsewhere in commodities, the December gold contract fell $12.90 to US$1,132.70 an ounce and December copper gave back four cents to US$2.25 a pound. “People traditionally buy gold for safety reasons, to diversify away from other assets”. An added influx of supply would put downward pressure on the price of the previous metal, Orengo said.
The index has wiped out all its gains since October, 2013, the last time it closed at these levels, Bloomberg reports.
The Toronto Stock Exchange lost 2.8 per cent of its value Monday, in a rout that saw the S&P TSX Composite index drop 373 points.
The Canadian dollar lost nearly half a cent amid the gloom, to close at 74.66 cents US. And it is reported Monday that the politicians said prices of Valeant’s heart drugs Nitropress and Isuprel increased by 212 percent and 525 percent from the day when Valeant acquired the rights to sell them.
“A lot of pharma companies have been put under scrutiny”, Orengo said.
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In corporate news today, China has fined Canada’s Bombardier (BBD.B.TO) and a unit of local trainmaker CRRC Corp a small amount each for setting up a joint venture without permission. It’s stock company’s stock rose 20 cents or 2.21 per cent to US$9.27.
