Markets were lower Thursday as the price of oil fell and U.S. employment data continued damper hopes of an economic recovery in that country.
The Toronto Stock Exchange's benchmark, the S&P/TSX composite index, plunged 193.39 points, or 1.89 per cent, to 10,039.05 in early trading.
The Canadian dollar was down to 87.29 cents U.S. after closing at 87.69 cents U.S. Wednesday.
Oil prices fell to $60.58 U.S. a barrel from its previous finish at $62.04 U.S.. Gold was up to $939.30 U.S. an ounce after closing at $937.40 U.S. on Wednesday.
The value of Canada's wholesale trade fell in March, led by lower sales of building materials and machinery and electronic equipment, Statistics Canada said Thursday. Wholesale sales were down 0.6 per cent to $40.5 billion for the month. Most economists had expected a drop of 0.8 per cent in March. Based on sales volume, wholesale sales were down 1.3 per cent.
On a positive note, Canadian consumers are becoming increasingly confident about the prospects for an economic recovery and appear ready to start spending again, marketing and research group TNS Canadian Facts said Thursday. Its consumer confidence index climbed to 94.1 in May — up from 90.5 in April and 83.7 in March.
In the U.S., the Dow Jones industrial average fell 124.25 points, or 1.48 per cent, to 8,297.63, and the Nasdaq composite index was down 20.70 points, or 1.2 per cent, to 1,707.22 early Thursday.
Initial U.S. jobless claims for the week of May 16 came in at 631,000, a 1.9 per cent decline from the previous week and slightly higher than the expected 625,000. Continuing claims for the week of May 9 came in at a rather ominous 6.66 million, which equates to a 75,000 increase over the previous week.
Although the four-week moving average for initial claims showed a slower pace of job destruction, "we are not convinced that a significant improvement is among us quite yet," Ian Pollick, economics strategist at TD Securities, wrote in a report. "In addition, the fact that the four-week moving average for continuing claims has drifted consistently higher for 66-straight weeks is indicative of a labour market shut for business."
Overseas markets were also down Thursday. Ratings agency Standard & Poor's lowered its outlook on Britain from "stable" to "negative" for the first time on Thursday, citing government debt and political uncertainty with a national election coming up in 2010. Also Thursday, the U.K.'s Office for National Statistics said retail sales volumes rose 0.9 per cent in April, nearly double the expected 0.5 per cent gain. In March, sales rose 1.1 per cent. Sales rose 2.6 per cent over the same period a year earlier.
London's FTSE 100 index was down 107.66 points, or 2.41 per cent, to 4,360.75 at midday. In Frankfurt, Germany's DAX was down 101.80 points, or 2.02 points, to 4,937.14, and the Paris CAC lost 64.44 points, or 1.95 per cent, to 3,238.93.
In Asia, Japan's Nikkei stock average closed down 80.49 points, or 0.86 per cent, to 9,264.15 and Hong Kong's Hang Seng index lost 276.35 points, or 1.58 per cent, to 7,199.49.
On Wednesday, the S&P/TSX closed up 131.49 points, or 1.3 per cent, to 10,232.44. The Dow Jones fell 52.81 points, or 0.62 per cent, to 8,422.04 and the Nasdaq gained 6.7 points, or 0.39 per cent, to 1,727.84.
