Canada's main stock ?index moved downward on Tuesday as easing Middle East tensions lifted global sentiment, ahead of the Bank of Canada's rate decision this week.
The TSX Composite Index weakened 195.47 points to move into noon hour EDT Tuesday at 34,283.27.
The Canadian dollar inched up 0.03 cents to 71.65 cents U.S.
Consumer discretionary stocks led gains, with apparel maker Gildan Activewear up $2.34, or 2.9%. to $81.81
Among the materials group, Seabridge Gold faded six cents, Capstone Copper sank 16 cents, or 1.2%, to $13.28, and Ivanhoe Mines ditched 18 cents, or 1.6%, to $11.31.
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 slid $21.05, or 2.2%, to 926.86.
The 12 TSX subgroups were evenly divided, with energy dumping 3%, gold losing 2.1%, and materials off 2%.
The half-dozen gainers were led by consumer staples, up 1.5%, real-estate, better 1.3%, and telecoms, up 0.8%.
ON WALLSTREET
U.S. equities 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 stumbled 403.03 points to 50,382.
The S&P 500 parted with 130.82 points, or 1.8%, to 7,275.07.
The tech-heavy NASDAQ stumbled 764.67 points, or 3%, to 25,167.39.
Micron Technology dropped more than 6% 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 almost 5% as Monday’s rebound fizzled.
West Texas Intermediate crude futures shed 5% to trade under $90 a barrel at around $86 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.”
Prices for the 10-year Treasury moved upward, lowering yields to 4.52% from Monday’s 4.57%. Treasury prices and yields move in opposite directions.
Oil prices lost $5.27 to $86.03 U.S. a barrel.
Gold prices tumbled $73.30 to $4,290.10 U.S. an ounce.
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