After a gap down opening and a subsequent rise from lower levels, the Canadian stock market slipped deeper into the red and eventually ended on a highly negative note on Friday.
Disappointing industrial production and retail sales data from China raised concerns about economic growth and triggered a sell off in global markets. Weak data from Eurozone hurt as well.
Energy and information technology shares were the most prominent losers. Shares from materials, consumer discretionary, industrials and consumer staples sections too ended mostly lower. Financial, telecommunications and real estate stocks ended mixed.
The benchmark S&P/TSX Composite Index ended down 155.28 points, or 1.05%, at 14,595.07, after scaling a high of 14,71.31 and a low of 14,567.32 in the session.
The Capped Energy Index declined by 3.1%. Suncor Energy (SU.TO), Canadian Natural Resources (CNQ.TO), Cenovus Energy (CVE.TO), Imperial Oil (IMO.TO) and ARC Resources (ARX.TO) declined by 2 to 3%.
Vermilion Energy (VET.TO) and PrairieSky Royalty (PSK.TO) both ended lower by about 4.1%, while Encana Corporation (ECA.TO) lost more than 6%.
Crescent Point Energy (CPG.TO) and Baytex Energy Corp. (BTE.TO) ended lower by 4.8% and 3.2%, respectively.
The Capped Information Technology Index declined by 4.9%. Shopify Inc. (SHOP.TO) tumbled 12.8%, Kinaxis Inc. (KXS.TO) closed 5.75% down, Descartes Systems Group Inc. (DSG.TO) ended lower by 5%,
Constellation Software Inc. (CSU.TO), Open Text Corporation (OTEX.TO), Celestica Inc. (CLS.TO) and Sierra Wireless Inc. (SW.TO) lost 2 to 4%.
Enghouse Systems (ENGH.TO) declined by 2.5%. The company reported fourth quarter net income of $19.6 million or $0.71 per diluted share, compared to the prior year's fourth quarter net income of $18.9 million, or $0.69 per diluted share.
Among materials shares, Barrick Gold Corporation (ABX.TO), Franco-Nevada Corporation (FNV.TO), Teck Resources (TECK.B.TO), Agnico Eagle Mines (AEM.TO), Goldcorp Inc. (G.TO) and CCL Industries (CCL.B.TO) lost 1 to 4%. First Quantum Minerals (FM.TO) ended 5.5% down and Kirkland Gold (KL.TO) ended lower by nearly 5%. Wheaton Precious Metals Corp. (WPM.TO) jumped 14.35%.
Among bank stocks, National Bank of Canada (NA.TO) declined by about 0.5%, while others ended flat.
In the healthcare space, Bausch Health Companies Inc. (BHC.TO) declined by about 3.2%. Aurora Cannabis (ACB.TO) jumped more than 3% and Aphria Inc. (APHA.TO) ended 6.1% up.
Asian markets declined sharply on Friday, reacting to data from China that showed industrial production to have grown at the slowest pace in three years in November. Retail sales increased at the slowest pace since 2003, reeling under the impact of trade issues with the U.S.
European markets too closed weak, with weak data from China, eurozone, Germany and France prompting investors to exit counters. The ECB's warning about a slowdown in growth in the coming year and Brexit uncertainty too weighed on sentiment.
U.S. stocks ended with sharp losses despite climbing off the day's lows. The Dow declined by 2%, the Nasdaq ended 2.3% down and the S&P 500 closed lower by 1.9%. The sell-off was due to renewed concerns about the outlook for global economic growth following the release of data showing disappointing industrial output and retail sales growth in China.
A report showing growth in the eurozone private sector has decelerated to its slowest pace in more than four years in December added to the negative sentiment.
According to the report from the Commerce Department, U.S. retail sales growth in November was slightly weaker than expected due to a steep drop in sales by gas stations, although underlying retail sales growth remained strong. The report said retail sales edged up by 0.2% in November after spiking by an upwardly revised 1.1% in October.
Economists had expected retail sales to rise by 0.3% compared to the 0.8% increase originally reported for the previous month.
Meanwhile, the report said closely watched core retail sales, which exclude autos, gasoline, building materials and food services, increased by 0.9 percent in November after climbing by an upwardly revised 0.7 percent in October.
A separate report from the Federal Reserve said industrial production climbed by 0.6% in November compared to economist estimates for 0.3% growth. However, the industrial production data for October was revised to show a 0.2% drop compared to the previously reported 0.1% uptick.
In commodities, crude oil futures for January ended down $1.38, or 2.6%, $51.20 a barrel on demand growth concerns.
Gold futures for February ended down $6.00, or 0.5%, at $1,241.40 an ounce.
Silver futures for March settled at $14.637 an ounce, down $0.218 from previous close of $14.855 an ounce. Copper futures for March ended at $2.7625, down $0.0045 from Thursday's close of $2.7670 per pound.
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