Monday, September 22nd17.5°C
23284
23088

Stocks tumble amid disappointing Chinese data, selloff in health, tech stocks

TORONTO - North American stock markets sold off Thursday as weak trade data from China raised fresh questions about the pace of growth in the world's second-largest economy.

The declines were also fuelled by a fresh round of disenchantment with formerly high-flying biotech and technology stocks.

The S&P/TSX composite index fell 127.58 points to 14,308 as China’s exports fell 6.6 per cent in March from a year earlier, well below analyst expectations of single-digit growth. Imports to China contracted by 11.3 per cent.

The Canadian dollar dropped 0.48 of a cent to 91.5 cents US.

U.S. markets tumbled while biotechnology companies fell sharply as Biogen Idec, Gilead Sciences and other biotech companies extended a recent slump. After making big gains last year, biotechs have been crushed in recent weeks as they come under pressure to lower prices for their drugs.

The Dow Jones industrials plunged 266.96 points to 16,170.22 while a selloff in tech stocks deemed too rich ahead of their first-quarter earnings pushed the Nasdaq 129.79 points lower to 4,054.11. The three per cent drop was the worst since November 2011.

"What is interesting is we are still seeing the Nasdaq pulling back more than the others so people are still retrenching out of the real high flyers," said Colin Cieszynski, senior markets analyst at CMC Canada.

"Tech does not look good and is looking like it's in a major correction."

Facebook dropped 5.2 per cent while Google retreated 4.1 per cent.

The S&P 500 index lost 39.09 points at 1,833.09, giving up its gains for the year.

The Chinese trade data raised worries the world's second-biggest economy will have trouble meeting its official target of 7.5 per cent growth this year. It also pushed some analysts to lower already reduced expectations for growth.

Barclays lowered its first-quarter gross domestic product forecast to 7.2 per cent year over year from 7.3 per cent.

Negative investor sentiment on U.S. markets spread to the TSX where the health care sector gave back 3.35 per cent with Valeant Pharmaceuticals (TSX:VRX) down $5.29 or 3.76 per cent to $135.36 .

Canadian tech stocks also helped push the TSX lower with BlackBerry (TSX:BB) down 28 cents to $8.38.

Financial stocks were also a major weight, down 1.06 per cent amid reduced earnings expectations for the big U.S. banks. Analysts at Thomson Reuters expect financial sector earnings to decline by 2.8 per cent and revenue to fall by one per cent.

The energy sector was 0.13 per cent lower while the sluggish Chinese data helped push the April crude contract on the New York Mercantile Exchange down 20 cents to US$103.40 a barrel.

Copper was up a cent to $3.05 a pound. The metal has already fallen 11 per cent this year amid lower expectations for Chinese economic growth. The base metals sector gave up early gains to move down 0.76 per cent.

The gold sector dropped about 1.4 per cent while bullion prices headed higher with the June contract up $14.60 to US$1,320.50 an ounce.

Shares in Goldcorp Inc. (TSX:G) dropped after it upped its offer for Montreal-based Osisko Mining Corp. (TSX:OSK), in an attempt to trump the gold miner's friendly deal with Yamana Gold announced last week. Goldcorp said its revised offer values Osisko at $3.6 billion or $7.65 per Osisko share. Goldcorp fell $1 to $26.84 while Osisko edged up three cents to $7.58.

The Canadian Press


Read more Business News

23480


Recent Trending




Today's Market
S&P TSX15129.00-136.35
S&P CDNX928.09-26.97
DJIA17172.68-107.06
Nasdaq4527.689-52.10
S&P 5001994.29-16.11
CDN Dollar0.9066-0.0058
Gold1216.00-0.60
Oil91.48-0.93
Lumber325.50-3.50
Natural Gas3.909+0.006

 
Okanagan Companies
Pacific Safety0.17+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.27-0.10
Cantex0.04-0.01
Anavex Life Sciences0.2195-0.0035
Metalex Ventures0.05-0.01
Russel Metals35.37-0.38
Copper Mountain Mining2.40-0.26
Colorado Resources0.16-0.005
ReliaBrand Inc0.0206-0.0043
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.27-0.02

 





FEATURED Property
1891025910 Hewetson Court
4 bedrooms 3 baths
$719,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Is this a fair offer from ICBC?

“Is this a fair offer from ICBC?”…. “How much should I settle for?”… “What is my claim worth?” These are just some of the questions I regularly get as...


Disruptive innovation

Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...


Executors and their duties

There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...

_



23499

23499


Member of BC Press Council


22620