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Mining industry

Canadian Stocks Fall for Fifth Day Amid Euro Gains and European Austerity Concerns

Strategic Insights

— 2 min read

Canadian stocks declined for a fifth consecutive day, driven by a slump in gold producers, as the euro strengthened against major currencies following Germany's ban on certain types of bearish trades. Goldcorp Inc., Canada's second-largest gold producer, dropped 4.3% after the metal retreated the most in a month. Sears Canada Inc. rose 6.5% after announcing a special dividend, while Canadian Imperial Bank of Commerce advanced 2.7% on an analyst upgrade. The Standard & Poor's/TSX Composite Index declined 98.74 points, or 0.8%, to 11,665.77. Germany's ban on naked short sales and credit-default swaps may help cool speculation in gold, according to Brendan Caldwell, CEO of Caldwell Investment Management Ltd. The S&P/TSX has underperformed other developed markets this month, partly due to concerns that European austerity measures may hinder growth without addressing the continent's fiscal gaps.

Key Takeaways:

  • Canadian stocks declined for the fifth consecutive day, with the S&P/TSX Composite Index falling 98.74 points, or 0.8%, to 11,665.77.
  • Gold producer stocks retreated, with Goldcorp Inc. dropping 4.3% and Barrick Gold Corp. slumping 3.6% to contribute the most to the S&P/TSX decline.
  • The euro strengthened against major currencies, including a 1.5% gain against the U.S. dollar, as investors sought to support the euro or arrest the rise of the Swiss franc.
  • Germany's ban on naked short sales and credit-default swaps may help cool speculation in gold, according to Brendan Caldwell, CEO of Caldwell Investment Management Ltd.
  • The S&P/TSX has underperformed other developed markets this month, partly due to concerns over European austerity measures and fiscal gaps.
  • Sears Canada Inc. rose 6.5% after announcing a special dividend, while Canadian Imperial Bank of Commerce advanced 2.7% on an analyst upgrade.
  • The Canadian benchmark has outperformed 20 of 22 other developed markets primary equity indexes this month, primarily due to a rally in gold offsetting some losses.
  • Gold surged 11% this year through yesterday as investors sought an alternative to holding euros, but retreated 1.8% to $1,193.10 an ounce.
  • Germany's BaFin markets regulator banned investors from naked short sales -- speculating on declines in companies they don't own -- for 10 banks and insurers, as well as naked credit-default swaps on euro-area government bonds starting today.

Statistics:

  • The S&P/TSX Composite Index declined 98.74 points, or 0.8%, to 11,665.77.
  • Gold surged 11% this year through yesterday.
  • The euro rose 1.5% against the U.S. dollar.
  • Gold retreated 1.8% to $1,193.10 an ounce.
  • The Canadian benchmark has outperformed 20 of 22 other developed markets primary equity indexes this month.
  • Goldcorp Inc. dropped 4.3%.
  • Barrick Gold Corp. slumped 3.6%.
  • Gammon Gold Inc. tumbled 9.4% to C$7.29.
  • Sears Canada Inc. rose 6.5%.

Sources:

  • Euclid Infotech Pvt. Ltd.
  • Syndicate.info
  • Albawaba.com

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