The index’s slide, its eighth in 10 sessions, tracked falls on stock markets around the world.
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Toronto Stock Exchange’s benchmark Standard & Poor’s/TSX Composite Index dropped 57.66 points or 0.40 percent to 14,193.87 points, the lowest in three weeks.
“It’s a commodity economy as far as the market is concerned”, he said. The nation’s largest lenders are scheduled to report third-quarter earnings beginning August. 25.
“The finish of the summer time driving season and…”
In the U.S., the Dow Jones industrial average fell 33.7 points, or 0.19 per cent, to 17,511.48, the S&P 500 lost 5.56 points, or 0.26 per cent, to 2,096.88 and the Nasdaq Composite dropped 32.35 points, or 0.64 per cent, to 5,059.35.
The sell-off followed Beijing’s efforts to stabilize the market, including share buying by state-owned companies and a ban on selling by certain major shareholders.
“We’re seeing the impact come through another way, through commodities and the commodity sectors more than a direct effect”, he said.
Cieszynski said oil, which has lost more than half its value since hitting highs above $110 in July 2014, has become oversold in the past six months as investors reacted to headlines about increasing supply and poor prospects for demand.
“It’s not a clear-cut story of this is good and getting better, it’s a lot of stop and go”, he said.
“The problem in China is that the markets haven’t been released for free and open trading and until that happens there is going to continue to be downside pressure”, said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas.
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Oil prices plumbed multi-year lows, following an unexpected increase in U.S. crude inventories.
