TSX drops on global growth worries, energy shares
By John Tilak
TORONTO (Reuters) - Canada's main stock index declined on Monday as sluggish data raised concerns about the global economic recovery and shares of energy producers sold off despite a rebound in oil prices.
Manufacturing growth in Asia and Europe slowed in November due to weak demand, and U.S. manufacturing sector growth hit its lowest in 10 months, separate reports showed.
Oil prices remained volatile, initially slipping to a five-year low before rebounding to jump more than 4 percent. [O/R]
The broader Canadian benchmark has been pulled down by recent weakness in energy shares, which have lost more than a third of their value since mid-June. The energy sector slipped 1.4 percent on Monday.
The decision by the Organization of the Petroleum Exporting Countries to hold output at a meeting last week has sent both oil prices and energy shares into a tailspin.
"It's essentially followthrough selling from last week because OPEC's decision not to cut output has had a catastrophic impact on the energy producers," said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver.
"The continued spate of bad news on crude oil has spooked investors," he added. "Volatile commodity prices are going to be a feature of the markets going forward."
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE shed 119.38 points, or 0.81 percent, to close at 14,625.32, after touching its lowest point in more than three weeks. Continued...