Canada’s main stock index fell from a nine-week peak on Monday, as energy stocks were hit by tumbling oil prices after weaker-than-expected Chinese data revived fears about a global economic slowdown.
At 10:37 a.m. ET (1437 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 98.07 points, or 0.49%, at 20,081.74.
Brent crude and U.S. West Texas Intermediate crude futures both fell over 4% after data showed China’s economy unexpectedly slowed in July, while refinery output slipped to its lowest since March 2020.
Canada’s energy index fell 2.8% to lead sectoral losses. The country is a major oil exporter.
“The slowdown in China will be short lived but having said that, the market may react negatively,” said Allan Small, senior investment advisor at Allan Small Financial Group.
“Overall, the market is telling me that unless something new comes up that we haven’t factored in yet, it is poised to move higher in the second-half of the year,” he added.
Canadian stocks have rallied along with their global counterparts in recent weeks after being hit by geopolitical uncertainty and interest rate hikes aimed at taming soaring inflation.
The index has climbed over 10% since its June lows, but is about 10% away from the record highs in April.
Among single stocks, Turquoise Hill Resources Ltd slumped 10.6% after it rejected an offer by majority shareholder Rio Tinto Ltd, to buy the 49% stake it does not already own for $2.7 billion.
Canada’s Home Capital Group Inc rose 7.0% after it rejected a takeover bid from a buyer it did not name, saying the offer undervalued the mortgage lender.
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