TORONTO – North American equity markets finished the day sharply lower on Monday amid more evidence of a continuing slowdown in China, the world’s second-largest economy.
In Toronto, the S&P/TSX index plunged 374 points or 2.8 per cent to 13,004.58 as oil and metals prices fell after government statistics showed that the profits at China’s industrial companies plunged 8.8 per cent last month.
On commodity markets, the November contract for benchmark crude oil was down $1.36 at US$44.34 a barrel, while November natural gas gained three cents to US$2.66 per thousand cubic feet.
Elsewhere in commodities, the December gold contract fell $12.90 to US$1,132.70 an ounce and December copper gave back four cents to US$2.25 a pound.
The loonie was off 0.32 of a U.S. cent at 74.78 cents US.
U.S. sell-off
In New York, the Dow Jones industrial average was down 312.37 points or 1.91 per cent at 16,002.3, while the broader S&P 500 declined 49.55 points or 2.57 per cent to 1,881.79 and Nasdaq plunged 142.52 points or 3.04 per cent to 4,543.52.
“Whenever the market is down, the first place to look these days is China,” John Manley, chief equity strategist at Wells Fargo Fund Management, told The Associated Press.
“Right now, we need evidence that China is not slowing that much and that profits are still going to be OK.”
In corporate news, Alcoa Inc. bucked the downward trend after announcing that it will split into two independent companies. Its bauxite, aluminum and casting operations will be in one company and its engineering and transportation businesses will be in another. It’s stock company’s stock rose 20 cents or 2.21 per cent to US$9.27.
European markers were also sharply lower Monday, with France’s CAC-40 losing 2.8 per cent, while Germany’s DAX fell 2.1 per cent and Britain’s FTSE 100 was down 2.5 per cent.
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