TSX Drops on Turkey issue

Canadian Tire, Saputo in focus

Canada's main stock index opened lower on Friday, tracking global equities which tumbled following a plunge in the Turkish lira.

The S&P/TSX Composite Index ditched 80.55 points to begin the week’s last session at 16,336.43

The Canadian dollar lost 0.2 cents at 76.41 cents U.S.

Bega Cheese Ltd said the Australian competition regulator had approved its purchase of Saputo Inc's dairy processing facility at Koroit in the state of Victoria.

Saputo shares surrendered seven cents to $40.93.

Desjardins raised the target price on Canadian Tire Corporation to $205 from $200. Canadian Tire shares gained 37 cents to $168.45.

Canaccord Genuity raised the price target on Brookfield Asset Management to $47.50 from $47. Brookfield shares dipped 62 cents, or 1.1%, to $56.63.

CIBC cut the target price on Information Services Corp. to $19.00 from $21.00. Information shares slipped nine cents to $17.76.

On the economic beat, Statistics Canada said the economy created 54,000 jobs in July, dropping the unemployment rate by 0.2 percentage points to 5.8%.


The TSX Venture Exchange backpedaled 2.01 points to 697.68

All but two of the 12 subgroups were to the bad in Friday’s first hour, with utilities, consumer staple and consumer discretionary each down 0.8%.

The two gainers were gold, up 0.4%, and industrials, squeezing up 0.03%.


The Dow Jones Industrial Average toppled 201.65 points to 25,307.58, as Intel declined.

The S&P 500 fell 16.45 points to 2,837.01, as financials lagged

The NASDAQ suffered 40.68 points to 7,851.10. Friday's drop comes a day after the NASDAQ scored its longest winning streak in close to a year, boosted by positive trade out of tech stocks including Amazon and Apple.

Intel shares declined nearly 3% after Goldman Sachs lowered its rating on the chipmaker, citing manufacturing issues.

Bank shares led the way lower in the U.S. as Bank of America, Goldman Sachs, Morgan Stanley and J.P. Morgan Chase all dropped more than 1%. Tech shares also fell as Facebook, Alphabet and Amazon all declined.

The lira fell 20% after President Donald Trump authorized the doubling of metals tariffs on Turkey.

Trump's comment came after Turkish President Recep Tayyip Erdogan asked citizens to "change the euros, the dollars and the gold that you are keeping beneath your pillows into lira," noting this is "a domestic and national struggle."

The Consumer Price Index rose 0.2% last month, the U.S. Labor Department said Friday. Meanwhile, "core CPI" hit 2.4% in July, that figure’s highest since September 2008.

Prices for the benchmark for the 10-year U.S. Treasury gained sharply, lowering yields to 2.89% from Thursday’s 2.93%. Treasury prices and yields move in opposite directions

Oil prices gained 68 cents to $67.49 U.S. a barrel.

Gold prices improved $4.10 to $1,224 U.S. an ounce.