TSX sheds more than 200 points in longest losing streak in a year

TORONTO North American markets fell sharply Thursday in a wide-ranging sell-off amid soft commodity prices and economic data in the United States.

The S&P/TSX composite index lost 224 points to 14,895 points, weighed down by energy, metal and financial stocks. The Canadian dollar faded 0.30 of a cent to 90.14 cents US.

All of a sudden, Canadian stocks are receiving a dose of reality

Brian Belski, chief investment strategist for BMO Capital Markets, said some of the downward pressure could be attributed to profit-taking, but mostly, the market was pulling back from recent highs.

Investors in Canada over the near term have become complacent because the Canadian market has outperformed, he said.

The issue when stocks go up is that youre believing it more, and now all of a sudden, Canadian stocks are receiving a dose of reality.

Lower commodities weighed on stocks and the Canadian dollar. The December gold bullion contract was down $4.40 at US$1,215.10 an ounce, while the December copper contract fell two cents at US$3.04 a pound. The November crude oil contract dipped 43 cents at US$92.37 a barrel.

We really feel that the momentum trade, especially in the energy and materials space has really skewed prices to the upside so far this year, Belski said.

Now the resulting momentum shift is turning the other way.

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TSX sheds more than 200 points in longest losing streak in a year