Canada's main stock index slipped in morning trade on Tuesday as heavyweight energy and banking stocks weighed, while Bombardier Inc jumped on a report it is in talks to merge its train operations with those of Germany's Siemens AG.
The S&P/TSX Composite Index collapsed 81.54 points to approach noon Tuesday at 15,649.25
The Canadian dollar retreated 0.12 cents at 74.94 cents U.S.
Bombardier shares gained 4.5% to $2.32, their highest level in a month, after Bloomberg cited unnamed sources saying the plane and train maker was in talks with Siemens to merge train operations in a deal that could be worth 10 billion euros.
Gold miners also featured among the most influential movers on the index as the price of the precious metal rose, with geopolitical worries about North Korea, the Middle East and the looming French election spurring investors to seek assets seen as havens from risk.
Barrick Gold advanced 1.3% to $26.33 and Goldcorp Inc rose 1.2% to $20.15.
Pipeline company Enbridge Inc fell 0.4% to $56.74 and Suncor Energy declined 0.6% to $41.54.
The heavyweight financials group slipped, with Bank of Montreal down 0.5% at $99.38 and Toronto-Dominion Bank off 0.3% at $66.25.
ON BAYSTREET
The TSX Venture Exchange took on 4.3 points to 829.34
All but three of the 12 TSX subgroups were lower, as health-care sank 1.8%, financials doffed 0.9% and consumer staples faded 0.8%.
The three gainers were gold, 3% brighter, materials, improving 1.3%, and real-estate, squeezing up 0.1%.
ON WALLSTREET
U.S. equities fell on Tuesday as geopolitical tensions kept investors on edge.
The Dow Jones Industrials dropped 88.66 points to 20,569.36, with Apple and Goldman Sachs contributing the most losses. Apple was hit by a countersuit from chipmaker Qualcomm in a dispute over mobile technology licensing fees.
The Dow transports were also under pressure, as shares of United Continental pulled back more than 3%, as outrage over a passenger being dragged off an overbooked flight finally caught up to the stock.
The S&P 500 slouched 13.68 points to 2,343.42, with financials and information technology leading decliners.
The NASDAQ Composite dumped 41.51 points to 5,839.41
On the economic data front, the NFIB small business optimism index slipped to 104.7 in March from 105.3 in February, but the uncertainty index hit its second-highest level in history.
Elsewhere, the U.S. JOLTS Report (Job Openings and Labour Turnover Survey) showed job openings were little changed at 5.7 million on the last business day of February. Over the month, hires and separations were little changed at 5.3 million and 5.1 million, respectively.
U.S. Secretary of State Rex Tillerson said Tuesday his country will stand up against anyone who commits crimes against humanity. His comments were made before heading to Moscow, where he and Russian officials are expected to discuss last week's suspected chemical attack in Syria.
The U.S. responded by launching 59 Tomahawk missiles at a Syrian airfield. But the Trump administration is also navigating through rising tensions with North Korea.
Prices for the benchmark 10-year Treasury note gained sharply, dropping yields to 2.31% from Monday’s 2.36%. Treasury prices and yields move in opposite directions.
Oil prices slid 20 cents at $52.88 U.S. a barrel
Gold prices hiked $20.40 at $1,274.30 U.S. an ounce.
