Canada’s main stock index fell to its lowest level in almost two months on Wednesday as China retaliated to U.S. tariffs, heightening fears of a trade war.
The S&P/TSX Composite Index collapsed 167.95 points, or 1.1%, to begin Wednesday at 15,012.81
The Canadian dollar faded 0.2 cents at 77.93 cents U.S.
Health-care concerns were the worst affected, as Canopy Growth was battered 78 cents, or 2.8%, to $27.21, while Valeant Pharmaceuticals docked 39 cents, or 1.9%, to $19.68.
Saputo won approval from Australia's competition regulator for the planned $1-billion takeover of the country's largest dairy processor, Murray Goulburn Co-operative, after the Canadian company agreed to sell a key asset.
Saputo shares gained 11 cents to $39.49.
CIBC raised the price target on Step Energy Services to $24.00 from $22.00. Step shares faded five cents to $9.64.
ON BAYSTREET
The TSX Venture Exchange stumbled 10.77 points, or 1.4%, to 758.53
All but one of the 12 TSX subgroups were lower in the first hour, with health-care plummeting 3.1%, energy down 1.8%, and information technology sliding 1.4%.
Only gold stocks registered gains, and 0.8% at that.
ON WALLSTREET
The Dow Jones Industrial Average stumbled 352.60 points, or 1.5%, to 23,680.76, with Boeing and Caterpillar leading all stocks in the index lower.
The S&P 500 staggered 24.54 points to 2,590.01, with energy and tech as the worst-performing sectors.
The NASDAQ Composite index moved lower 70.45 points, or 1%, to 6,870.68
China's Ministry of Commerce said the tariffs are designed to target up to $50 billion in U.S. products annually and would hit goods like soybeans and cars.
Automakers were down, with Ford down 0.6% and General Motors off 0.7%. Boeing also pulled back, falling more than 4%. Caterpillar declined 2.3%, while United Technologies — another Dow component — fell 2%
In economic news, the ADP National Employment Report showed private companies added 241,000 jobs in March, more than the expected gain of 205,000.
The services purchasing managers' index (PMI) slipped to 54.0 in March from 55.9 in February. Meanwhile the non-manufacturing Institute for Supply Management index came in at 58.8 for last month, missing expectations.
Prices for the benchmark 10-year Treasury note gained ground, lowering yields to 2.76% from Tuesday’s 2.78%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.18 a barrel to $62.33 U.S.
Gold prices picked up $7.80 to $1,345.10 U.S. an ounce.
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