Toronto Stocks Slid Amid Renewed Concerns About Global Growth

   By Ezequiel Minaya 
 

Canadian stocks declined Tuesday, as global markets lost confidence in last week's bounce back from the fallout of the U.K. vote to leave the European Union.

The S&P/TSX Composite Index fell 39.30 points, or 0.3%, to 14219.57. Decliners led advancers, 935 To 709. Trading volume was 418.1 million shares.

The blue chip S&P/TSX 60 Index dropped 2.54 points, or 0.3%, at 826.56.

After initial losses following the so-called Brexit vote, global stocks rebounded. Those gains retreated Tuesday as investors and analysts questioned whether markets were being too optimistic and uncertainty about global growth and the U.K's future relationship to the EU was renewed.

Some analysts, however, cautioned against becoming overly pessimistic about the global economy. Investors shouldn't necessarily "get too concerned about global growth just because the U.K. is slowing," said Michael Metcalfe, head of macro strategy at State Street Global Markets.

A more meaningful slowdown from the Brexit vote would likely require possible political contagion in the eurozone or an acceleration of concerns about eurozone banks, Mr. Metcalfe said.

In Canada, gold companies were among the biggest gainers as investors sought safe-havens. Kinross Gold Corp. rose 5.9%, and Yamana Gold Inc. climbed 3.5%.

Energy company Encana Corp. was among leading decliners, falling 3.1%, as crude prices sagged. Manulife Financial Corp. was also among top losers, declining 3.2%, amid a broader selloff in the banking sector.

Other companies making notable moves were Jean Coutu Group Inc., Teck Resources Ltd., First Quantum Minerals Ltd., HudBay Minerals Inc. and Lundin Mining Corp.

Pharmacy operator Jean Coutu posted a first-quarter profit of 27 Canadian cents a share, unchanged from a year earlier and a penny shy of the Thomson Reuters mean estimate. Share fell 4.9%.

Copper prices fell on Tuesday on concerns over demand in China, the world's top consumer of the industrial metal. Those concerns weighed on shares of Teck Resources, down 2.4%; First Quantum, off 4.7%; and HudBay, which declined 4.1%.

--Riva Gold and Akane Otani contributed to this report.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

July 05, 2016 16:59 ET (20:59 GMT)

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