Equities in Canada’s largest market slipped at the open on Friday, as investors assessed data showing stronger-than-expected domestic economic growth and ahead of an expected U.S.-Mexico trade agreement that will exclude Canada.
The S&P/TSX Composite Index handed over 69.47 points to begin the week’s last session at 16,135.15
The Canadian dollar inched up 0.04 cents to 77.13 cents.
Canada on Thursday shrugged off U.S. President Donald Trump's criticism that talks to modernize the North American Free Trade Agreement were moving too slowly and made clear it had to keep negotiating as long as there was a chance of success.
The Bank of Canada will continue to raise interest rates gradually, Governor Stephen Poloz said on Thursday, stressing that despite economic uncertainties, the bank did not want to let inflation momentum build.
Chief among losing subgroups was consumer discretionary stocks, with Magna International falling $1.28, or 1.8%, to $68.62, while Canadian Tire staggered $2.13, or 1.4%, to $153.30.
Communications stocks also tipped lower, as BCE slid 58 cents, or 1.1%, to $52.28, while Rogers Communications skidded 53 cents to $66.79.
Gold stocks tried to cushion the blow, as Barrick Gold gained three cents to $14.56, while Goldcorp gained 11 cents to $13.33.
On the economic slate, Statistics Canada reported that real gross domestic product grew 0.2% in July after essentially no change in June.
This increase was concentrated as 12 of 20 sectors were up, led by growth in manufacturing, wholesale trade, utilities and transportation and warehousing.
Elsewhere, the agency’s industrial product price index was down 0.5% in August, mainly due to lower prices for primary non-ferrous metal products.
The Raw Materials Price Index fell 4.6%, largely reflecting lower prices for crude energy products.
ON BAYSTREET
The TSX Venture Exchange deducted 0.21 points to 698.21
All but three of the 12 subgroups were lower, as consumer discretionary stocks surrendered 1%, communications lost 0.8%, and health-care, off 0.7%
The three gainers were gold, up 0.7%, materials, ahead 0.4%, and information technology, better by 0.3%.
ON WALLSTREET
Stocks fell on Friday as lingering trade tensions took a toll on investor sentiment. Equities also followed European stocks lower amid worries about Italy's budget.
The Dow Jones Industrials dropped 13.37 points at outset to 26,426.56, as J.P. Morgan Chase and Goldman Sachs lagged.
The S&P 500 subtracted 2.2 points to 2,911.80, as financials and materials underperformed.
The NASDAQ stepped back 13.28 points to 8,028.69, as Tesla shares fell sharply.
Tesla shares plummeted more than 10% after the Securities and Exchange Commission sued CEO Elon Musk for fraud. While sources close to the company told the media that the firm was also expecting to be sued, Tesla wasn't, however, named as a defendant in the complaint.
The U.S. and Canada have not yet come to an agreement on trade as a Sept. 30 deadline rapidly approaches. The two countries are trying to come to terms so Canada can join a trade deal struck between the U.S. and Mexico that would replace the current North American Free Trade Agreement (NAFTA), which has been heavily criticized by President Donald Trump.
U.S. Trade Representative Robert Lighthizer said Tuesday the U.S. was ready to move ahead on a new NAFTA deal without Canada.
Consumer spending rose 0.3% in August while the personal consumption expenditures price index, the Federal Reserve's preferred measure of inflation, rose 2% on a year-over-year basis.
Prices for the benchmark for the 10-year U.S. Treasury gained, lowering yields to 3.04% from Thursday’s 3.05%. Treasury prices and yields move in opposite directions.
Oil prices prospered 24 cents to $72.36 U.S. a barrel.
Gold prices regained $3.80 to $1,191.20 U.S. an ounce.
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