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Canadian investors are set to face a painful day as China announced that GDP rose at a clip of just 7.7% in the first quarter. According to Bloomberg, expectations were set for 8% growth. This news has most global markets trading lower but can be expected to be especially harsh on Canada’s resource heavy index.
No commodity appears left unscathed by the Chinese data. Currently, gold is off by 6.1%, silver is down 10%, and industrial metals like copper have declined by 3%. WTI Crude Oil is also down by about 3%, trading at a price of $88.88.
Expect Barrick Gold (TSX:ABX,NYSE:ABX), Goldcorp (TSX:G,NYSE:GG), Teck Resources (TSX:TCK.B,NYSE:TCK), Suncor Energy (TSX:SU,NYSE:SU), and Canadian Natural Resources (TSX:CNQ,NYSE:CNQ) to be the names that drive our market lower on this otherwise fine spring’ish Monday.
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Fool contributor Iain Butler is short $32 July 2013 put options on Goldcorp, short $26 August put options on Teck and owns shares outright in Barrick Gold and Teck. The Motley Fool has no positions in the stocks mentioned above.