Canada's main stock index opened lower on Wednesday, dragged down by shares of energy companies as oil prices were pressured by rising production.
The S&P/TSX Composite Index dwindled 137.5 points to start the year’s first trading day at 14,185.36
The Canadian dollar was down 0.08 cents at 73.3 U.S.
Chinese gold miner Zijin Mining Group said it plans to sell up to eight billion yuan worth of new shares in Shanghai to help fund its purchase of Nevsun Resources Ltd., whose shares acquired a penny each to $6.00.
CIBC cut the price target on Canadian National Railway to $118.00 from $120.00. CNR reversed $1.31, or 1.3%, to $99.80.
CIBC cut the price target on Cargojet to $90.00 from $93.00. Cargojet shares were anything but airborne, trailing the price on New Year’s Eve by 87 cents, or 1.2%, to $69.92.
CIBC cut the price target on Linamar to $68.00 from $71.00, Linamar was flattened $1.08, or 2.4%, to $44.22.
ON BAYSTREET
The TSX Venture Exchange moved higher 1.77 points to 558.97
All but one of the 12 TSX subgroups stumbled out of the 2019 gate, with consumer discretionary stocks slouching 2%, energy off 1.7%, and information technology down 1.4%.
Health-care was haler by 0.7%, the lone sub-group with muscle.
ON WALLSTREET
U.S. stocks fell on Wednesday to start off 2019 as disappointing economic data from around the world and lingering concerns over global trade hampered risk appetite.
The Dow Jones Industrials Index quickly backtracked on Monday’s gains, dropping 138.46 points, to start out the year at 23,189, led by a decline in Caterpillar. These losses come after the 30-stock index completed its worst year in a decade on Monday.
The S&P 500 declined 14.59 points to 2,492.76, as real estate and health-care lagged.
The NASDAQ Composite dropped 43.03 points to 6,592.25, as shares of Amazon, Apple, Netflix and Google-parent Alphabet all declined.
The moves Wednesday come after a private sector survey showed manufacturing activity in the world’s second-largest economy contracted for the first time in 19 months. China’s Markit Manufacturing Purchasing Managers’ Index (PMI) for December dipped to 49.7 from 50.2 in November.
Shares of tech-related companies were among the worst performers. Netflix’s stock dropped 2.9% after an analyst at SunTrust Robinson Humphrey said subscriber growth — a key metric for the company — fell short of expectations in the fourth quarter. Chipmakers Nvidia and Advanced Micro Devices both dropped more than 1.5% while Micron’s stock pulled back more than 1.2%.
Tesla shares also fell 9.6% after releasing weaker-than-expected delivery numbers for the fourth quarter.
Despite solid gains on Monday, the S&P 500 slid 6.2% and Dow was down 5.6% for 2018. Both indexes posted their biggest annual losses since 2008, when they plunged 38.5% and 33.8%, respectively. The NASDAQ lost 3.9% in 2018, its worst year in a decade, when it dropped 40%.
Prices for the benchmark for the 10-year U.S. Treasury eked higher, lowering yields to 2.67% from Monday’s 2.69%. Treasury prices and yields move in opposite directions.
Oil prices lost 32 cents to $45.09 U.S. a barrel.
Gold prices acquired $4.30 at $1,285.60 U.S. an ounce.
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