Stocks in Canada’s largest market resumed their downward path Tuesday, as jitters remained as to the progress of trade talks between the United States and China.
The TSX Composite Index slumbered 55.76 points to begin Tuesday trading at 16,365.99
The Canadian dollar was unchanged at 75.14 cents U.S.
CIBC cut the target price on Canadian Pacific Railway to $327.00 from $345.00. CP shares dipped $3.35, or 1.2%, to $277.16
Citigroup cut the price target on Imperial Oil to $30.00 from $36.00. Imperial fell 64 cents, or 1.9%, to $32.49.
Citigroup cut the price target on Suncor Energy to $47.00 from $55.00. Suncor shares slid 57 cents, or 1.4%, to $39.34.
On the economic calendar, Canada Mortgage and Housing Corporation reported September housing starts trended toward 223,507 units, compared to 218,782 units in August,
Meantime, Statistics Canada says the value of building permits issued by Canadian municipalities rose 6.1% to $9.0 billion in August, largely because of increases in multi-family and industrial permits.
ON BAYSTREET
The TSX Venture Exchange inched up 0.54 points to 556.60
All but two of the 12 Toronto subgroups began the day in negative country, as energy and health-care again lost 2%, while industrials dipped 1.1%.
The two gaining groups were gold, ahead 1.8%, and materials, improving 0.8%
ON WALLSTREET
Stocks fell sharply on Tuesday as investor optimism around the upcoming U.S.-China trade talks faded.
The Dow Jones Industrials slumbered 242.51 points to 26,235.51
The S&P 500 slipped 34.49 points, or 1.2%, to 2,904.30
The NASDAQ Composite fell 99.82 points, or 1.3%, to 7,856.48
Bank shares fell broadly. Citigroup, Bank of America and J.P. Morgan Chase slid more than 1% each as rates declined.
The S&P 500 industrials sectors pulled back more than 1%, led by declines in Caterpillar and Deere. Boeing also contributed to the losses, sliding more than 1%.
Big tech shares such as FaceBook, Amazon, Apple and Alphabet declined as well.
Bloomberg News also reported the White House is looking to limit Chinese stocks within government pension funds. Alibaba and JD.com U.S.-listed shares fell more than 1.5% each.
On the data front, U.S. producer prices posted their biggest drop in eight months in September, dragged down by lower costs for goods and services. Producer prices are an indicator of inflation and a decline could give the Federal Reserve more room to ease monetary policy.
The South China Morning Post reported China is toning down its expectations ahead of trade negotiations with the United States. The report said Chinese Vice Premier Liu He — who will lead the country’s trade delegation — will not carry the title of “special envoy,” signaling he has not received any specific instructions by President Xi Jinping. U.S.-China trade talks are set to start Thursday.
The U.S. also expanded its trade blacklist to include some of China’s top artificial intelligence firms on Monday, punishing Beijing for its treatment of predominantly Muslim ethnic minorities. China’s foreign ministry said to “stay tuned” for retaliation following the blacklist expansion.
Prices for the benchmark 10-year U.S. Treasury moved upward, lowering yields to 1.52% from Monday’s 1.57%. Treasury prices and yields move in opposite directions.
Oil prices descended 61 cents to $52.14 U.S. a barrel.
Gold prices regained $8.20 to $1,512.60 U.S. an ounce.
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