Canadian stocks plunge over resources fall, growth concerns

Canada's main stock market in Toronto slid down to a two-week low Tuesday as energy and mining stocks led massive losses for the resource-linked market over renewed concerns on global economic growth.

The Toronto Stock Exchange's benchmark Standard & Poor's/TSX Composite Index lost 157.95 points, or 1.14 percent, to close at 13,707.68 points. Six of the TSX index's eight main sub-sectors were lower.

Oil prices extended the loss as market expected U.S. crude inventories to rise. The West Texas Intermediate for June delivery moved down 1.13 U.S. dollars to settle at 43.65 dollars a barrel, while Brent crude for July delivery decreased 86 cents to close at 44.97 dollars a barrel.

TSX energy group and mining group fell 2.52 percent and 5.32 percent respectively. The most influential decliners included Encana Corporation, losing 10.43 percent to 8.33 Canadian dollars (6.55 U.S. dollars), after the oil and gas producer posted a bigger-than-expected quarterly loss due to lower production amid a steep fall in oil prices.

Suncor Energy Inc fell 1.77 percent to 34.95 Canadian dollars, while Canadian Natural Resources Ltd was down 1.99 percent at 35.93 Canadian dollars.

Financial stocks also got bruised, primarily Bank of Nova Scotia fell 2.67 percent to 63.43 Canadian dollars while National Bank of Canada was down 4.09 percent to 42.70 Canadian dollars.

The materials group, which includes precious and base metals miners and fertilizer companies, lost ground, including a 2.63 percent drop in the shares of Barrick Gold to 23.33 Canadian dollars.

WestJet Airlines reported a nearly 38 percent fall in quarterly profit at a time of economic weakness in the oil-producing Alberta province, where the Canadian airline mostly operates. Its shares dipped 5.30 percent to 20.35 Canadian dollars.

As a major consumer of raw materials, China's manufacturing data released overnight renewed market concerns about a possible slowdown in the world's second largest economy.

Markets were also digesting a surprise interest rate cut to a record low of 1.75 percent by Australia's central bank. The Australian economy has been hit hard by falling commodity prices.

"The central bank of Australia cited weaker than expected inflation data as their reason for cutting interest rates, this may be something that we watch for in Canada as well," said Michael J Smith, a Toronto currency expert at AFEX, a global non-bank provider of foreign currency services.

"If our inflation data starts to come in lower than the Bank of Canada wants we may see the same thing happen here, such a move by the BOC would take the Canadian dollar much lower," said Smith.

The Canadian dollar traded signally lower at 0.7866 U.S. dollar, compared with Monday's closing rate of 0.7977 U.S. dollar. Enditem