Equities in Canada’s largest centre slipped at the open on Friday, as energy shares were hit by a more than 2% drop in oil prices, following President Donald Trump's shock threat of tariffs on Mexico.
The S&P/TSX Composite Index plummeted 125.93 points to open the final session of May at 15,963.31
The Canadian dollar fell 0.26 cents to 73.84 cents U.S.
CIBC raised target price on BRP Inc. to $52.00 from $50.00
National Bank of Canada raised the target price on Lightspeed POS to $30.00 from $25.00
Credit Suisse cut the target price on National Bank to $64.00 from $65.00
On the economic calendar, Statistics Canada reported that Canada’s economy made its way upward- during March. Gross Domestic Product grew 0.1% in the first quarter, the same growth rate as the fourth quarter of 2018.
Real gross national income rose 0.9%, largely because of higher export prices of crude oil and crude bitumen.
Elsewhere, the agency’s industrial product price index rose 0.8% in April, driven mainly by higher prices for energy and petroleum products, while the raw materials price index increased 5.6%, primarily on the strength of higher crude energy product prices.
ON BAYSTREET
The TSX Venture Exchange gave back 3.57 points to 598.93.
All but two of the 12 Toronto subgroups were lower in the first hour, as health-care stocks tumbled 2.8%, energy lost 1.7%, and consumer discretionary stocks let go of 1.2%.
The two gainers were gold, up 3.1%, and materials, ahead 1.6%
ON WALLSTREET
Stocks tanked on Friday as investors feared President Donald Trump’s surprise threat of tariffs on all Mexico imports, amid a worsening trade war with China, could risk sending the U.S. economy into a recession.
The Dow Jones Industrials faded 309.63 points, or 1.2%, to 24,860.25
The S&P 500 faded 34.85 points, or 1.3%, to 2,753.98. The S&P 500 was already down 5.3% this month through Thursday after trade talks fell apart with China and rhetoric on both sides worsened in May.
The NASDAQ Composite subtracted 106.44 points, or 1.4%, to 7,461.28
Shares of GM dropped 4%. Ford lost 3.3%. Both have significant production in Mexico that could be subject to tariffs. Shares of railroads Kansas City Southern and Union Pacific also fell 5% and 2%, respectively. Fiat Chrysler traded 5.1% lower.
Corona and Modelo beer maker Constellation Brands slid 6.8% and was headed for its worst day since Jan. 9, when it lost 12.4%.
On Thursday evening, Trump announced the U.S. would impose a 5% tariff on all Mexican imports from June 10 until illegal immigration across the southern border was stopped.
Prices for the benchmark 10-year U.S. Treasury gained, lowering yields to 2.16% from Thursday’s 2.22%. Treasury prices and yields move in opposite directions.
Oil prices docked $1.50 to $55.09 U.S. a barrel.
Gold prices moved ahead $8.40 at $1,300.80 U.S. an ounce.
