"It's abundantly clear the U.S. housing market is slowing, it's beginning to become clear that the housing market weakness will have a broader impact on that economy, particularly in terms of consumer spending," said David Wolf, head of Canadian economics and strategy at Merrill Lynch Canada.

On the TSX, the metals and mines sector fell 5.3 per cent as the December copper contract in New York retreated 15.05 cents to US$3.42 a pound. Shares in Teck Cominco Ltd. (TSX:TCK.B) declined $5.57 to C$69.53.