Canadian Stocks Hammered, TAX Drops 209 Points

(RTTNews) - Canadian stocks followed Wall Street sharply lower on Monday amid concerns about weakness in emerging markets. Resource producers were hammered on expectations of reduced demand for energy and metals.

Gauges of all sectors of the TSX Composite finished in the red, led by miners and tech stocks.

The S&P/TSX composite index lost 208.74 points, or 1.52 percent, to 13,486.2.

In the U.S., the S&P and the Dow Jones Industrial Average ended the day with the steepest decline since June 20. The Dow dropped 326 points.

Markets on both sides of the border reacted to disappointing news from the world's two economic superpowers.

An indicator of Chinese non-manufacturing sector activity declined in January, in another sign that the economy is slowing amid Beijing's efforts to push through the planned reforms.

Energy stocks dropped 2.1 percent as the price of crude oil tumbled below $97 a barrel.

Husky Energy Inc (HSE.TO) plans a C$300 million project at its 160,000-barrel-per-day refinery at Lima, Ohio. The stock was down fractionally.

Diversified miners lost 2.6 percent.

Valeant Pharmaceuticals International, Inc. (VRX, VRX.TO) has agreed to acquire PreCision Dermatology, Inc. for $475 million cash, plus an additional $25 million payable upon the achievement of a sales-based milestone. Shares were down 2 percent.

A Canadian National Railway (CNR.TO) train carrying fuel oil, liquid fertilizer and methanol derailed Friday in southern Mississippi. Nobody was hurt. Shares slipped 1.5 percent.