TSX faces triple-digit loss

Photo: Contributed

The Toronto stock market shifted lower near midday as fresh data showed a retrenchment in Canada's economic growth.

The S&P/TSX composite index was down 100.65 points at 15,006.35.

The Canadian dollar was down 0.36 of a U.S. cent at 80.06 cents.

Statistics Canada says the economy contracted at an annual pace of 0.6 per cent in the first three months of the year, as weaker oil prices had a more severe impact than economists expected. It was the first time real GDP dipped below zero since the fourth quarter of 2011, and the biggest slide into negative growth since the second quarter of 2009.

In commodities, oil prices got a pop after the latest data on crude inventories showed a bigger decline more than anticipated. The July crude oil contract lifted $1.64 to $59.33 on the New York Mercantile Exchange. June gold moved ahead 60 cents to $1,189.40 an ounce.

The U.S. economy also contracted in the first quarter with gross domestic product weakening 0.7 per cent. The Dow Jones industrial average was down 135.12 points at 17,991.00, while the Nasdaq lost 29.99 points to 5,067.99 and the S&P 500 gave back 13.12 points to 2,107.67.

TSX energy stocks were flat while financials were the biggest decliner, falling 0.9 per cent as the last of the five biggest Canadian banks reported its quarterly results.

Scotiabank (TSX:BNS) posted a two per cent increase in its second quarter profits, beating analyst expectations. Shares of the bank rose 68 cents to $65.25.