Stocks in Toronto recovered from a midday gulch Tuesday, but recovered and progressed toward the breakeven point without quite making it there, due to weakness of materials and energy.
The TSX Composite Index was down 67.05 points to close Tuesday at 34,411.69.
The Canadian dollar inched up 0.06 cents to 71.70 cents U.S.
Consumer discretionary stocks led gains, with apparel maker Gildan Activewear up $3.17, or 4%. to $82.64.
Among the materials group Seabridge Gold faded 10 cents to $38.88, Capstone Copper added four cents to $13.48, and Ivanhoe Mines ditched 15 cents, or 1.3%, to $11.34.
Among consumer staples, George Weston sprang $2.63, or 2.6%, to $104.54, while Loblaw climbed $1.57, or 2.4%, to $66.30.
Energy stocks faded, however, as Vermilion Energy slid 75 cents, or 4.6%, to $15.48, while Strathcona dipped $2.40, or 5.1%, to $44.79.
Iran and Israel halted attacks on each other, but caution lingered as talks between Washington and Tehran have yet to yield a lasting deal and the Strait of Hormuz remains closed.
Back home, investors awaited a Bank of Canada interest rate decision on Wednesday. The central bank was expected to leave its benchmark interest rate on hold at 2.25% for a fifth straight meeting, according to a majority of economists polled by Reuters.
Meanwhile, Prime Minister Mark Carney is pushing to diversify trade beyond the United States, but Canada's appeal to global partners still hinges on tariff-free access to the U.S. market through the USMCA agreement.
On the economic slate, Statistics Canada reports this morning that in April, Canada's merchandise exports increased 1.6%, while imports edged up 0.3%. As a result, Canada's merchandise trade surplus with the world widened from $1.8 billion in March to $2.7 billion in April.
ON BAYSTREET
The TSX Venture Exchange dropped 14.85, or 1.6%, to 933.06.
The 12 TSX subgroups were evenly divided, with energy dumping 3.5%, materials, sliding 2.6%, and gold losing 2.5%.
The half-dozen gainers were led by consumer staples and real-estate, each up 1.8%, and consumer discretionary stocks, up 1%.
ON WALLSTREET
The S&P 500 and NASDAQ dropped on Tuesday, even as oil prices pulled back, as a surge in chip stocks lost momentum after a one-day rally.
The Dow Jones Industrials recovered 84.93 points to 50,870.84.
The much-broader index parted with 19.29 points to 7,386.44.
The tech-heavy NASDAQ stumbled 250.84 points, or 1%, to 25,678.82.
Micron Technology dropped almost 5% after Monday’s 10% comeback. The shares tumbled about 20% in two days last week, including a
13% rout on Friday. Broadcom, which had an equally steep two-day drop last week, fell more than 2% as Monday’s rebound fizzled.
West Texas Intermediate crude futures lost 3% to trade under $90 a barrel at around $88 after U.S. Energy Secretary Chris Wright said that Strait of Hormuz ship traffic is “rising very meaningfully.”
The move also comes after President Donald Trump said that a deal between the U.S. and Iran could be reached in “two or three days” that reopens the Strait of Hormuz “immediately.”
The move also comes after President Donald Trump said that a deal between the U.S. and Iran could be reached in “two or three days” that reopens the Strait of Hormuz “immediately.”
Prices for the 10-year Treasury moved upward, lowering yields to 4.53% from Monday’s 4.57%. Treasury prices and yields move in opposite directions.
Oil prices lost $2.93 to $88.37 U.S. a barrel.
Gold prices tumbled $87.50 to $4,275.900 U.S. an ounce.
