Canadian stocks closed sharply lower Wednesday, dragged down mostly by mining and energy issues as global markets slipped on eurozone concerns focused on Spain and Greece. Fears that the contagion could spread from Greece to Spain and Italy increased with both countries continuing to struggle at bond auctions, with higher borrowing costs and falling short of targets.
Global markets were also impacted on reports that China, the second largest commodity consuming nation in the world, may not match the stimulus efforts of 2008, with a much lower spending this time around.
Toronto's main index, the S&P/TSX, closed Wednesday at 11,433.26, down 176.04 points or 1.52 percent. The S&P/TSX Composite Index touched an intraday high of 11,609.30 and a low of 11,422.69.
The TSX Venture Index closed at 1,289.43, down 19.91 points or 1.52 percent. The index opened at 1,301.22 compared to its previous close of 1,309.34.
Major European markets closed in the red with U.K.'s FTSE 100 ending 1.7 percent lower, the German DAX 30 index down 1.8 percent, France's CAC 40 index slipped 2.2 percent, Spain's IBEX 35 index lost 2.6 percent, and the Stoxx Europe 600 was down 1.5 percent.
Almost all components of the S&P/TSX Index were in the red, driven mainly by the Energy Index which plunged almost 4 percent and the Diversified Metals & Mining Index that was down over 3 percent. The only exceptions were the Global Gold Index which gained 0.71 percent.
The Metals & Mining Index plummeted 3.13 percent, with Lundin Mining Corp. (LUN.TO) sharply down 5.83 percent, First Quantum Minerals Ltd. (FM.TO) down 3.44 percent, and Teck Resources Limited (TCK.B.TO) slipping 3.75 percent.
The Global Gold Index moved up 0.71 percent, with gold futures for August delivery gaining $14.70 or 1 percent to close at $1,565.70 an ounce Wednesday on the NYMEX.
Among gold stocks, Goldcorp. (G.TO) gained 2.45 percent, Barrick Gold (ABX.TO) was up 2.04 percent, and Kinross Gold (K.TO) up 2.29 percent. Eldorado Gold Corp. (ELD.TO) shed 0.50percent, while B2Gold (BTO.TO) dropped 4.62 percent.
The Materials Index edged down 0.26 percent with Potash Corporation of Saskatchewan Inc. (POT.TO) shedding 0.85 percent, while Eastern Platinum Limited (ELR.TO) plunged over 14 percent.
U.S. crude oil futures for July delivery Wednesday dropped $2.94 or 3.2 percent to close at $87.82 a barrel on the NYMEX.
The Energy Index plunged over 3.94 percent with Suncor Energy Inc. (SU.TO) shedding 3.56 percent, while Canadian Natural Resources Limited (CNQ.TO) plummeted 6.81 percent. Ithaca Energy Inc. (IAE.TO) shed 5.46 percent, while Encana Corp (ECA.TO) lost 3.90 percent.
Heavyweights transportation systems maker Bombardier Inc. (BBD.B.TO) dropped 2.28 percent.
Smartphone maker Research In Motion Limited (RIM) plunged 7.14 percent, after the Blackberry maker warned of a first quarter operating loss, while it revealed the hiring of J.P. Morgan Securities LLC and RBC Capital Markets to assist in a review of its business and financial performance.
The Financial Index slipped 1.06 percent, Manulife Financial Corp. (MFC.TO) dropped 4.47 percent, Sun Life Financial Inc. (SLF.TO) down 2.88 percent, and Royal Bank of Canada (RY.TO) slipping 0.67 percent. Bank of Nova Scotia (BNS.TO) edged up 0.33 percent, while TD Bank (TD.TO) fell 1.15 percent.
In economic news, Statistics Canada said the Industrial Product Price Index (IPPI) was steady in April, after three consecutive advances. Of the major commodity groups, eight were up, nine were down and four were unchanged. The IPPI rose 0.4 percent in April when compared to a year ago. The Raw Materials Price Index fell 2.0 percent, largely on mineral fuels.
Pending home sales in the U.S. unexpectedly decreased in April, according to a report by the National Association of Realtors Wednesday. The drop follows three consecutive monthly gains. The pending home sales index tumbled 5.5 percent to 95.5 in April after rising 3.8 percent to a downwardly revised 101.1 in March. Economists expected pending home sales to edge up 0.5 percent. Nonetheless, the index moved up 14.4 percent when compared to April 2011.
A pending home sale is one in which a contract has been signed but not yet closed. It would normally take four to six weeks to close a contracted sale.
Elsewhere, eurozone economic confidence declined more than expected to 90.6 in May from a revised 92.9 in April, survey results from the European Commission showed. Economists expected the index to drop to 91.9. Industrial confidence deteriorated to -11.3 in May from -9 in April. Economists anticipated a drop to -10.2.
European stock markets reacted sharply to the economic confidence report, but stemmed further losses following an European Commission statement that suggested use of the European Stability Mechanism Fund (the permanent rescue fund) to bail out troubled banks. The commission also proposed a mechanism for banking supervision union for the currency union to support the banking system.
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Market Analysis
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.