Equity markets in Canada’s largest centre retreated on Friday as lower oil prices dragged down energy shares, while the bank sector sagged as part of a global selloff after recent strong gains.
The S&P/TSX Composite lost 62.74 points to greet noon Friday at 14,440.93. For the week, the index trailed last Friday’s close by 0.6%, on track for its fourth negative week in the last five.
The Canadian dollar pulled back 0.33 cents to 75.68 cents U.S.
Financial issues gave back ground, with Royal Bank of Canada – the country’s biggest bank -- off 0.9% at $80.63.
While trading in bank shares in Canada has been choppy in the past week, the sector rose in the past two sessions, including a 1% climb on Thursday. Banks are up nearly 11% so far this year.
Health-care issues took a beating before noon, as Valeant Pharmaceuticals fell 23 cents to $35.80.
Consumer staples dropped as Alimentation Couche-Tard lost 68 cents, or 1.1%, to $64.26.
Among telecoms, Rogers Communications faded 91 cents, or 1.6%, to $55.08, while TELUS slid 21 cents to $41.92.
The energy group also went south as U.S. crude oil prices were down on concerns that the global supply glut would persist.
North of the border, shares of Suncor Energy fell 0.5% to $34.28.
On the economic slate, Statistics Canada reported Friday that manufacturing sales edged up 0.1% in July to $50.7 billion. The agency reports higher sales in the food, petroleum and coal products, and primary metals industries were largely offset by a decrease in the production of aerospace product and parts, and by lower machinery sales.
StatsCan also said foreign investment in Canadian securities slowed for a fourth straight month to $5.2 billion in July. At the same time, Canadian investors continued to invest in foreign securities by adding $4.6 billion to their holdings.
ON BAYSTREET
The TSX Venture Exchange poked into positive territory 0.14 points to 802.76
All but one of the 12 TSX subgroups remained stuck in negative country, as health-care faded 1.1%, while consumer staples and telecoms each skidded 0.9%.
Only utilities held out against the negative tide, forging 0.1% higher.
ON WALLSTREET
U.S. stocks traded lower on Friday as investors digested key inflation data and looked ahead to next week's Federal Reserve meeting.
By midday Friday, the Dow Jones Industrials trailed Thursday’s close by 78.62 points to 18,133.86, with Goldman Sachs and 3M falling the hardest.
The S&P 500 dropped 10.5 points to 2,136.76, with energy and financials lagging
The NASDAQ Composite subtracted 14.46 points to 5,235.23
Bank stocks had the spotlight on Friday as Deutsche Bank's U.S.-listed shares fell more than 9% after the U.S. Justice Department suggested the German banking giant pay $14 billion U.S. to settle a number of investigations related to mortgage securities
U.S. consumer prices increased more than expected in August as rising rents and health care costs offset a drop in gasoline prices, pointing to a steady build-up of inflation that could allow the Federal Reserve to raise interest rates this year.
The U.S. Labor Department said on Friday its Consumer Price Index rose 0.2% last month after being unchanged in July. In the 12 months through August, the CPI increased 1.1% after moving up 0.8% in July.
Other data released Friday included the September consumer sentiment read, which came in below the expected 90.8.
Prices for the 10-year Treasury moved higher, lowering yields to 1.7% from Thursday’s 1.71%. Treasury prices and yields move in opposite directions
Oil prices stayed lower 65 cents at $43.26 U.S. a barrel
Gold prices fell $5.50 at $1,312.50 U.S. an ounce.
