BLBG: Canadian Stocks Fall as Weaker Euro Weighs on Commodity Prices
By Matt Walcoff
Jan. 21 (Bloomberg) -- Canadian stocks fell for a second day as the U.S. dollar climbed to a five-month high against the euro and concern that there’s a bubble in the Chinese economy generated speculation the country would raise interest rates.
Barrick Gold Corp., the world’s largest producer, dropped 1.2 percent as the precious metal decreased to what would be its lowest closing price this year. Viterra Inc., Canada’s largest grain handler, lost 2 percent after announcing an unexpected fourth-quarter loss. Copper producer Inmet Mining Corp. slumped 2.7 percent after reporting equipment failures at a plant in Spain.
The Standard & Poor’s/TSX Composite Index slipped 12.88 points, or 0.1 percent, to 11,666.44 at 9:35 a.m. in Toronto.
The S&P/TSX soared 56 percent from March 9 to Dec. 2 as the U.S. dollar dropped 16 percent against a basket of world currencies. Since then, the U.S. currency has rebounded 5.2 percent on concern over wide budget deficits in Greece and other euro-using countries, leading to weakness in commodity prices and a decline in Canadian stocks.
To contact the reporter on this story: Matt Walcoff in Toronto at mwalcoff1@bloomberg.net
