Bay Street stocks plunged on Tuesday following the lead of markets in Europe and the U.S. Traders showed concern the global recession is deepening despite recent government efforts.
The S&P/TSX Composite Index declined 299.40 points or 3.45% to move at 8,378.70. Toronto's main index posted its lowest finish since Dec. 24.
Financial stocks lost 6.4%. Scotiabank (BNS.TO) led the big six banks lower with a 7.9% plunge, while National Bank (NA.TO) lost 5.76% and Bank of Montreal (BMO.TO) dropped 5.6%.
IGM Financial (IGM.TO) plunged 5.6% after the company was downgraded to Sell from Neutral by Dundee Securities.
Energy stocks are down 3.8% as crude oil closed below $35 per barrel. Light sweet crude fell to $34.92, down $2.59 for the session.
Suncor (SU.TO) dropped 7%, Vermillion Energy Trust (VET.UN.TO) lost 6.4%, Canadian Oil Sands (CNQ.TO) declined 6% and Encana (ECA.TO) fell 5.2%.
Mining stocks fell 3.5% as industrial metals saw weakness on the Comex.
Teck Cominco (TCK-B.TO) plummeted 9.75% after the company reported a fourth-quarter loss of C$607 million, compared to earnings of C$280 million a year ago.
Hudbay Minerals (HBM.TO) fell 1.7% as reported surfaced Tuesday indicating that Lundin Mining Corp. (LMC) has said the merger with HudBay has likely fallen through.
On the upside, gold stocks surged 5.2% and materials stocks are up 4.6%.
Iamgold (IMG.TO) jumped 12.6%, Yamana (YRI.TO) gained 7.7% and Eldorado (ELD.TO) climbed 6.9%.
In other corporate news, Research In Motion (RIM.TO) fell 5.8% after several executives at the company reached a settlement with the SEC related to charges of backdated employee stock options.
Air Canada (AC.B.TO) plunged 10.3% after Bank of America downgraded the shares to Neutral from Buy following a disappointing earnings report last week.
Meanwhile, Home Capital Group (HCG.TO) surged 11% after the Canadian mortgage lender reported fourth quarter net income of C$29.04 million or C$0.84 per share, up from C$24.23 million or C$0.70 per share in the same period last year.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.