TORONTO _ The resource-heavy Toronto stock market was sharply lower Wednesday as copper prices fell to fresh six-year lows amid reduced expectations for global growth and a surprisingly weak U.S. retail sales report.
The S&P/TSX composite index fell 169.6 points to 14,017.56 in a fourth day of declines.
The Canadian dollar rose 0.1 of a cent to 83.75 cents US.
An earnings disappointment from banking giant JPMorgan Chase also helped send New York futures well into negative territory.
The Dow Jones industrials dropped 235.43 points to 17,378.25, the Nasdaq fell 36.02 points to 4,625.48 while the S&P 500 index was down 21.46 points to 2,001.57.
JPMorgan earned $4.93 billion, or $1.19 a share, for the latest quarter. That compares with a profit of $5.28 billion, or $1.30 a share, a year ago. JPMorgan's results were hit by a $990 million charge for legal expenses. Total revenue fell three per cent to $22.5 billion. The results missed Wall Street expectations for earnings of $1.31 a share and its shares fell four per cent to $56.44.
Also, U.S. retail sales fell 0.9 per cent in December, the largest decline since January. Gas station sales retreated sharply due to lower prices, but sales in most other categories also fell. The retail data came as a blow because the United States has been the major pillar for global economic growth.
Commodity prices fell as a World Bank report said it now expects the global economy to expand three per cent in 2015, down from its earlier forecast of 3.4 per cent. It said that a strengthening U.S. economy and the fall in oil prices won't be enough to offset troubles in the eurozone and emerging markets.
Copper prices were slammed as the March contract tumbled 15 cents to US$2.49 a pound as inventories of the metal viewed as an economic bellwether grow. Copper prices have also been impacted by slowing growth in China and have tumbled 25 per cent over the past year.
The TSX base metals component dropped almost 12 per cent, adding to a 10 per cent slide on Tuesday. First Quantum Minerals Ltd. (TSX: T.FM, Stock Forum) plunged $2.68 or 20 per cent to $10.79 while Teck Resources (TSX:TCK.B) lost $1.55 or 10.5 per cent to $13.11.
The energy sector was down 0.45 per cent while crude rose 32 cents to US$46.21 a barrel.
Crude prices have collapsed since June 2014, down almost 60 per cent amid a glut of supply on global markets.
The price slide accelerated from the end of November when OPEC made it clear it wouldn't cut production to support prices and many big energy companies have responded by dramatically cutting back on spending plans.
Suncor Energy Inc. (TSX: T.SU, Stock Forum)was the latest energy giant to do so. On Tuesday, it said it expects its capital budget to be between $6.2 billion and $6.8 billion, down $1 billion from its spending estimate issued in mid-November. Suncor is also cutting 1,000 jobs and its shares gave back 59 cents to $34.22.
The gold sector was the only TSX advancer, ahead two per cent while February gold advanced $5.30 to US$1,239.70 an ounce.
In other earnings news, Shaw Communications (TSX:SJR.B) posted quarterly net income of $227 million or 46 cents per share, down from $245 million or 51 cents a year ago and five cents below an estimate compiled by Thomson Reuters. Shaw's consolidated revenue rose two per cent from a year ago to $1.39 billion, also below the analyst estimate and its stock dropped $1.20 to $29.95.
And auto parts maker Magna International Inc. (TSX:MG) estimates it will have between US$34.4 billion and US$36.1 billion of sales this year, short of analysts' average estimate of $37.65 billion and its shares lost $6.75 to $116.49.