Toronto market loses 0.9% as oil price tumbles

U.S. crude oil futures fell to their lowest level since July, settling down 4.3 per cent at $77.37 a barrel, as mixed Chinese economic data and rising OPEC exports eased fears about tight markets.

The energy sector fell 3.8 per cent, while the materials sector, which includes precious and base metals miners and fertilizer companies, lost 1.9 per cent as gold and copper prices also declined. (Image credit: Reuters)

Canada's main stock index fell on Tuesday, extending its pullback from a six-week high, as a sharp decline in commodity prices led to a sell-off in the materials and energy sectors. The Toronto Stock Exchange's S&P/TSX composite index ended down 168.35 points, or 0.9 per cent, at 19,575.59. It was the second straight day of declines for the index after it posted on Friday its highest closing level since September 20.

In contrast, the U.S. benchmark the S&P 500 notched its longest streak of gains in two years as long-term borrowing costs eased.

"Oil is at a multi-month low, much to the surprise of those that were concerned about energy prices with the conflict in the Middle East," said Barry Schwartz, a portfolio manager at Baskin Financial Services.

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"I think the market is pricing in lower growth for the worldwide economy going forward ... Energy is a commodity based on a strong economy."

U.S. crude oil futures fell to their lowest level since July, settling down 4.3 per cent at $77.37 a barrel, as mixed Chinese economic data and rising OPEC exports eased fears about tight markets.

The energy sector fell 3.8 per cent, while the materials sector, which includes precious and base metals miners and fertilizer companies, lost 1.9 per cent as gold and copper prices also declined.

Heavily-weighted financials were down 0.7 per cent, giving back some recent sharp gains.

Crescent Point Energy Corp was among the biggest decliners. Its shares fell 9.9 per cent as the company announced a deal to acquire Hammerhead Energy, potentially creating Canada's seventh-biggest energy producer. Shares of Stella-Jones rose 7.4 per cent, leading gains after the wood products maker reported higher revenue and profit in the third quarter.

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