Canadian stocks were lingering deep in the red Thursday morning as traders fret over the global economic growth amid a recent batch of weak economic data from China, Europe and the U.S. Meanwhile, the Federal Reserve gave no hint of any further quantitative easing in the near term, disappointing investors.
Weak jobs report released by Australia and the Bank of Korea's unexpected rate cut also weighed on trader sentiment, with the fall in commodity prices putting further pressure on the resource-heavy Toronto's main index.
The S&P/TSX Composite Index dived 158 57 points or 1.37 percent to 11,386.07, a day after snapping its four-session losing streak.
The Diversified Materials Index was the major loser, shedding close to 4 percent. First Quantum Minerals (FM.TO) lost close to 6 percent. Inmet Mining (IMN.TO) and Teck Resources (TCK_B.TO) were down around 3 percent each.
The price of crude oil was moving lower Thursday morning after the IEA today said global economic slowdown could hurt oil prices. The International Energy Agency, in its monthly Oil Market Report released earlier today, nudged up its 2013 oil demand growth forecast by 1.0 million barrels per day (mbd) to 90.90 mbd as global oil supply capacity seen growing slightly ahead of expected moderate demand growth. Crude for August shed $1.03 to $84.78 a barrel.
In the oil patch, MEG Energy (MEG.TO) and Crescent Point Energy (CPG.TO) lost around 3 percent each.
The price of gold was moving lower as the Federal Reserve gave no hint of any further quantitative easing in the near term. Gold for August lost $17.80 to $1,557.90 an ounce.
Among gold plays, Agnico-Eagle Mines (AEM.TO) and Goldcorp. (G.TO) were down over 4 percent each. Allied Nevada Gold (ANV.TO) and Barrick Gold (ABX.TO) surrendered around 2 percent each.
Bombardier Inc. (BBD_B.TO) shed over 3 percent even after announcing that its aerospace division got firm order for six Q400 NextGen airliners from Chorus Aviation Inc. (CHR_A.TO) for about $189 million.
Media company Corus Entertainment Inc. (CJR_B.TO) lost close to 6 percent despite posting improved third quarter profit of C$44.95 million or C$0.51 per share compared to last year's C$43.48 million or C$0.49 per share. Analysts were expecting the company to report earnings of C$0.49 per share this quarter.
Telecommunications company Cogeco Cable Inc. (CCA.TO) swung to profit in third quarter, reporting net income of C$53.16 million or C$1.09 per share, as against a loss of C$181.22 million or C$3.73 per share last year. The stock was down 2.5 percent.
Broadcasting and wireless communications equipment manufacturing company DragonWave Inc. (DWI.TO) dived 14 percent after reporting a wider first quarter loss of $12.6 million or $0.35 per share compared to $9.9 million or $0.28 per share in the same period last year. Analysts were expecting the company to report a loss of $0.28 per share for the quarter. Further, the company guides revenues in the range of $35 million to $45 million, much lower than the consensus revenues of $51.10 million for the second quarter.
Meanwhile, building material dealer Jewett-Cameron Trading Co. Ltd. (JCT.TO) skyrocketed 18 percent after reporting a much improved third-quarter profit of $937,000 or $0.59 per share, up from $604,000 or $0.30 per share in the prior-year quarter.
Biotechnology company Thallion Pharmaceuticals (TLN.TO) surged 18 percent after reporting a second-quarter net loss of $0.7 million, narrower than the net loss of $0.8 million in the comparable quarter last year. Yesterday, the stock plunged nearly 40 percent after the Canadian stock exchange put the shares under review with respect to meeting the continued listing requirements.
In economic news, Statistics Canada said its New Housing Price Index (NHPI) continued to move up, rising 0.3 percent in May, following a 0.2 percent increase in April. Year over year, the NHPI was up 2.4 percent in May, following a 2.5 percent increase the previous month. The metropolitan regions of Toronto and Oshawa, and Calgary were the top contributors to the increase, partially offset by weakness n Victoria.
From the U.S., a report from the Labor Department showed that jobless claims fell to 350,000 from the previous week's revised figure of 376,000. The drop surprised economists, who had expected jobless claims to edge up to 375,000 from the 374,000 originally reported for the previous week.
Elsewhere, euro zone industrial sector output bounced back unexpectedly in May. Industrial production rose 0.6 percent month-on-month in May, following a 1.1 percent decrease in April. The outcome was better than economists' expectations for a flat reading.
Elsewhere, wholesale price inflation in Germany eased to 1.1 percent in June from 1.7 percent in May, the Federal Statistical Office said. During the month, wholesale prices of metal and metal ores as well as semi-finished products fell 5.1 percent annually.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.