The Toronto Stock Exchange’s benchmark Standard & Poor’s/TSX Composite Index went down 117.96 points, or 0.91 percent, to close at 12,813.40 points. Eight of the index’s 10 main groups ended lower.
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Annual inflation rate is expected to have edged up slightly in January to 1.7 percent from 1.6 percent in December.
In commodity news, the March contract for natural gas fell five cents to US$1.80 per mmBtu, April gold rose $4.50 to US$1,230.80 an ounce and March copper was unchanged at US$2.08 a pound.
Experts said the decrease was largely due to unseasonably warm weather and lighter than usual snowfalls in December, as well as the impact of Black Friday pre-holiday sales events that led to stronger numbers in November.
Gold, materials and real estate were the leading advancers on the TSX, offsetting declines by the metals and mining and energy sectors. However, the company said it doesn’t expect to meet a deadline to begin construction of the Northern Gateway pipeline this year and will likely seek an extension, while its Sandpiper and Line 3 projects in the US also face possible delays as a result of regulatory hurdles.
The broader S&P 500 composite index declined 8.99 points to 1,917.83, while the Nasdaq composite index lost 46.52 points to 4,487.54.
“The direction and sentiment in the oil pits has a pretty tight correlation with what’s happening in equity markets”, said Michael James, managing director of equity trading at Wedbush Securities Inc.in Los Angeles.
It predicts the Canadian economy will grow by 1.4 per cent in 2016, a drop from its previous projection of 2.0 per cent growth for this year.
Brent futures were down 1.07 cents at $33.21 a barrel, with US crude falling by $1.28 to $29.49.
A record build in US crude inventories last week stoked concerns over persistent global oversupply.
Cenovus and Encana shares were cut to junk by Moody’s.
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The recovery at the back end of the WTI curve this week is prompting USA shale producers, for the first time in months, to inquire and place new hedges to lock in 2017 prices of around $45 a barrel.
