TSX down 260 points

The Toronto Stock Exchange lost 260 points, trading down to 13,624, in afternoon trading on Thursday. It had earlier been as much as 300 points lower.

The TSX composite index over the past three months

The drop was more than 1.5 per cent of the index's total. The main culprits appear to be sliding prices for oil and metals, as disappointing trade data from China raised worries about the strength of the world's second-largest economy.

China posted a surprise trade deficit on Thursday, its largest in more than seven years. Markets are also looking forward to more key Chinese data on Friday, including inflation, industrial production and the latest purchasing managers survey.

Oil lost $1.09 US in New York, with a barrel trading for $103.29. The traditional safe haven of gold was no safer, with bullion losing $18, to $1,411.

New York markets were also sharply lower. The Dow Jones industrial average lost 212 points, to 12,000, by late afternoon. Nasdaq was 53 points lower, at 2,698.

The base metals sector on the TSX fell more than two per cent as prices also declined with the May copper contract in New York losing 1.4 cents, to $4.20 US a pound. Teck Resources dropped $1.09, to $49.78.

Copper prices have slipped about seven per cent from mid-February amid worries that higher energy prices could hobble demand.

The loonie was 0.46 of a US cent lower, at 102.77 cents US.