Canadian stocks fell a third day as a rout in commodities prices from oil to gold sent shares in resource producers tumbling.
Raw-materials producers led declines as gold slumped 0.8 percent and an index of gold miners lost 2.4 percent. Energy shares slumped as crude dropped as much as 3 percent in New York after Iran said it’s not willing to freeze output. Consumer shares advanced amid data showing U.S. consumer confidence rose to the highest level since 2007, which helped spark gains in American shares.
The S&P/TSX Composite Index fell 0.4 percent to 14,558.04 at 4 p.m. in Toronto, paring its advance this quarter to 3.5 percent. The measure has gained 12 percent this year, second-most among developed markets tracked by Bloomberg.
The Canadian equity benchmark is roughly one-third commodity producers by weighting, making any selloff in resources likely to weigh on the broader index. The drop came as global equities looked set to halt a two-day slide, with U.S. shares edging higher after Hillary Clinton was deemed to have won Monday’s presidential debate against Donald Trump.
Energy producers in Canada declined 1.2 percent, as crude slumped after Iran said it’s not on their agenda to reach an agreement at the OPEC talks in Algiers. Crude fell 3 percent at 4 p.m. in New York. Cenovus Energy Inc. fell 2.5 percent to their lowest level since July 2016. TransCanada Corp. declined 0.3 percent, after the company agreed to buy all outstanding units of Columbia Pipeline Partners LP for about $848 million in cash.
Raw-materials producers lost 1.5 percent as spot gold and spot silver declined. OceanaGold Corp. dropped 14 percent to their lowest level since June, after they were named in an audit in the Philippines. Gold is set to end its longest winning streak since July, after Hillary Clinton was deemed the debate winner. Higher odds of a Trump victory are likely to spur price volatility in precious metals, according to Citigroup Inc. Barrick Gold Corp. fell 2.2 percent.
Financial shares fell less than 0.1 percent, amid lingering European bank concern and weakened national trade. The Bank of Nova Scotia fell at least 0.5 percent and the Royal Bank of Canada dropped 0.2 percent. Toronto-Dominion Bank edged 0.2 percent higher.