Equities in Canada’s largest markets finished Tuesday in the red, due in large part to reaction from U.S. President Donald Trump's latest threat to raise tariff on Chinese imports hit mining shares.
The S&P/TSX Composite Index sank 68.56 points to close Tuesday at 14,944.09
The Canadian dollar handed back 0.23 cents at 75.22 U.S.
Health-care stocks proved the main culprit for this negative activity, as Bausch Health Companies capsized 96 cents, or 3.1%, to $30.30, while Aphria slid 47 cents, or 4.4%, to $10.28.
Canada Goose Holdings weighed things in the consumer discretionary sector, down $4.52, or 5.1%, to $83.46, following news of a 10-million-share secondary offering. Canadian Tire was off $2.44, or 1.6%, to $147.31.
Materials faltered, too, as shares of miner First Quantum Minerals fell 21 cents, or 1.8%, to $11.63, while Agnico Eagle Mines slid 63 cents, or 1.5%. to $46.52.
Communications stocks led the few groups gaining ground, as Rogers picked up 95 cents, or 1.4%, to $71.05, while BCE gathered 19 cents to $57.01.
In real estate, Brookfield Asset Management enhanced itself 47 cents to $58.75.
The financials sector eked ahead, helped, however slightly, by a late gain of 11 cents in shares of Bank of Nova Scotia that reported quarterly earnings below market estimates. Scotiabank shares greeted the closing bell at $70.20. Royal Bank jumped 71 cents to $95.59.
In macroeconomic news, the federal government passed back-to-work legislation that will end the postal workers' strike, which lasted for more than a month, as the holiday season kicked off.
ON BAYSTREET
The TSX Venture Exchange doffed 7.58 points to 585.52
All but three of the 12 subgroups were in the minus category, as health-care dropped 2.1%, consumer discretionary stocks fell 1.9%, and materials were 1.8% to the bad.
The three gainers were communications, rallying 0.5%, real-estate, inching up 0.2%, and financials, nicking higher by 0.1%.
ON WALLSTREET
Stocks closed higher after a choppy session on Tuesday as comments from President Donald Trump's top economic advisor sparked some hope the U.S. and China will strike a compromise on trade.
The Dow Jones Industrial Average powered higher 108.49 points to 24,748.73. At its low of the day, the Dow dropped more than 200 points.
The S&P 500 ended with a gain of 8.75 points to 2,682.20
The NASDAQ recovered a mere 0.85 points to 7,082.7
The indexes rose after National Economic Council Director Larry Kudlow said the White House was having "a lot of communication with the Chinese government at all levels" ahead of a meeting between Trump and his Chinese counterpart, Xi Jinping on Friday.
Shares of Boeing, considered a trade bellwether for the company's high exposure to overseas markets, hit its high of the day before closing 0.5% higher.
Kudlow's comments came after Trump told The Wall Street Journal that it was "highly unlikely" that the U.S. would delay from increasing tariffs on $200 billion in Chinese goods to 25%. Trump went onto suggest that a 10% tariff on laptops and iPhones imported from China could be imposed. Shares of Apple closed 0.2% lower while steel stocks fell broadly on Trump's comments.
Shares of General Motors dropped 2.5% to their session low after Trump tweeted the administration is considering cutting the company's subsidies after closing several plants in the U.S.
Investors have also fretted over the Federal Reserve's plans to tighten monetary policy. The central bank is largely expected to hike rates next month.
Comments from Federal Reserve Vice Chairman Richard Clarida also helped stocks bounce back from their lows. Clarida said the central bank was "much closer" to a neutral rate than it was in December 2015, the first time the Fed hiked since the financial crisis.
Prices for the benchmark for the 10-year U.S. Treasury were slightly higher, lowering yields to 3.06% from Monday’s 3.07%. Treasury prices and yields move in opposite directions
Oil prices improved 15 cents to $51.78 U.S. a barrel.
Gold prices slumped $8.30 at $1,214.10 U.S. an ounce.
