Equities in Toronto slipped on Tuesday as banks and mining stocks weighed with lower commodity prices and bond yields, while investors also digested disappointing quarterly results from two U.S. corporate heavyweights.
The S&P/TSX Composite Index was off its lows of the morning, but still down 32.6 points to greet noon at 15,652.29
The Canadian dollar slipped 0.26 cents at 74.78 cents U.S.
The most influential weights on the index included diversified miner Teck Resources, which fell 3.5% to $28.76, its lowest since late March, and Lundin Mining, which was off 4.2% at $7.14.
Both stocks had notched solid gains in the prior session after Chinese data showed robust industrial output.
Prices for copper, lead and zinc all fell on Tuesday, as geopolitical tension over North Korea fueled risk aversion.
Financials lost ground, on Goldman Sachs’ woes (see below). Royal Bank of Canada fell 0.3% to $95.61, and Bank of Nova Scotia lost 0.4%to $76.83.
Health-care stocks took their lumps, too, as Canopy Growth Corp. faded 10 cents, or 1%, to $9.51, while Aphria Inc. dipped 10 cents, or 1.5%, to $6.74.
In the energy field, Canadian Natural Resources dropped 36 cents to $44.56, while Enbridge ceded 32 cents to $56.45.
In the economic docket, Statistics Canada reported that foreign investment in this country reached a record high $38.8 billion worth of securities in February, led by the issuing of new Canadian shares to non-resident investors.
At the same time, Canadian investors acquired $6.3 billion of foreign securities, mainly U.S. instruments.
Elsewhere, the Canadian Real Estate Association reported re-sales of Canadian homes rose 1.1% in March from February and prices were up 18.6% from a year earlier as strong demand in Toronto offset cooling elsewhere.
ON BAYSTREET
The TSX Venture Exchange retreated 2.93 points to 826.77.
Seven of the 12 TSX subgroups were in the red midday, with health-care down 0.8%, materials off 0.6%, and energy worse off 0.5%.
The five gainers were led by real-estate, up 0.3%, while consumer discretionary and gold stocks improved 0.2% each.
ON WALLSTREET
U.S. equities fell on Tuesday after Goldman Sachs shocked Wall Street by missing estimates. Investors also remained vigilant amid U.S.-North Korea tensions and the nearing of the French presidential election.
The Dow Jones Industrials tumbled 133.87 points to 20,503.05, with Goldman shaving off 74 points.
The S&P 500 sank 10.62 points to 2,338.39, with health care and financials falling more than 1% to lead decliners.
The NASDAQ Composite retreated 18.94 points to 5,837.84.
Goldman Sachs reported weaker-than-expected first-quarter results across the board, with trading revenue disappointing analysts.
Last quarter marked the first time since 2015 that Goldman's earnings per share missed analysts' expectations and the first time since the first quarter of last year that sales came below estimates.
Bank of America, meanwhile, reported strong first-quarter results with almost every single metric meeting or topping analyst expectations.
In economic news, housing starts fell 6.8% last month, more than the expected 3.9% decline. Industrial production rose 0.5% last month, in line with expectations.
Investors were still cautious over U.S.-North Korea tensions. Vice President Mike Pence reassured Japan of American commitment to reining in North Korea's nuclear and missile ambitions on Tuesday, after warning that U.S. strikes in Syria and Afghanistan showed the strength of its resolve.
Pence arrived in Tokyo from South Korea, where he assured leaders of an "iron-clad" alliance with the United States in the face of the reclusive North, which has conducted a series of missile and nuclear tests in defiance of U.N. sanctions.
Investors also kept an eye on France, as campaigning ramped up ahead of the first round of the presidential election. Left-wing candidate Jean-Luc Melenchon's surge in polls added to investors' worries as it becomes unclear who will win the contest.
Prices for the benchmark 10-year Treasury note were higher, lowering yields to 2.19% from Monday’s 2.25%. Treasury prices and yields move in opposite directions.
Oil prices faded 49 cents at $52.16 U.S. a barrel
Gold prices regained a dollar at $1,292.90 U.S. an ounce.
