TORONTO _ Economic worries weighed on stock markets Tuesday after German industrial production slid during the summer and the World Bank raised a red flag about growth in Asia.
The S&P/TSX composite index fell 58.06 points to 14,685.06 as traders also considered major acquisition activity in the mining sector.
Freeport-McMoRan Inc. is selling 80 per cent of its stake in the Candelaria-Ojos del Saladoa copper and gold mine in Chile for at least US$1.8 billion to Canadian resource company Lundin Mining (TSX:LUN). Freeport-McMoRan will also receive five per cent of copper revenues in any year over the next five years if the average price exceeds $4 a pound. It's currently trading at just over $3 a pound. Lundin shares declined 18 cents to $5.15.
The Canadian dollar was down 0.18 of a cent to 89.66 cents US after jumping just over a full U.S. cent on Monday as the American dollar weakened.
Concerns over third-quarter corporate earnings help send U.S. markets sharply lower with the Dow Jones industrials down 162.64 points to 16,829.27, the Nasdaq declined 41.46 points to 4,413.34 while the S&P 500 index dropped 17.41 points to 1,947.41.
Concerns grew that Germany's economy may not rebound as expected in the third quarter as data showed a four per cent drop in industrial output during August. It was the biggest monthly drop in industrial production in five years and was far bigger than the 1.5 per cent decline expected in markets.
The glum data came on the heels of another report Monday showing that German factory orders dropped 5.7 per cent in August from the previous month.
Also, the World Bank said developing countries in East Asia Pacific will see slightly slower economic growth this year. It says growth will come in at 6.9 per cent this year and next, down from 7.2 per cent in 2013. It adds that the pace of growth in the region, excluding China, will pick up next year.
The World Bank said Chinese growth will ease slightly to 7.4 per cent this year and 7.2 per cent in 2015, ``as the government seeks to put the economy on a more sustainable path with policies addressing financial vulnerabilities and structural constraints.''
The industrials sector led decliners as lower railway stocks helped push the group down 0.8 per cent. Canadian National Railway (TSX:CNR) shed 97 cents to $76.75.
The latest overseas economic data also weighed on commodities as November crude in New York dipped 57 cents to US$89.77 a barrel and the energy sector lost 0.55 per cent.
The base metals sector shed 0.4 per cent while December copper was off a cent to US$3.03 a pound.
The gold sector was also down 0.4 per cent while December gold was up $3.60 to US$1,205.80 an ounce.