Equity markets in Canada’s biggest centre fell on Monday after rallying for six days, dragged by energy companies tracking lower oil prices, while investors stayed cautious on renewed uncertainty over a trade deal between Washington and Beijing.
The TSX Composite Index nicked 1.82 points to move into noon hour ET at 16,879.24
The Canadian dollar inched up 0.04 cents to 75.64 cents U.S.
Open Text rose $1.13, or 2.1%, to $56.10 after the company agreed to buy cloud security company Carbonite Inc for nearly $800 million in cash.
Turquoise Hill Resources gave up early gains and stood unchanged by noon hour at 60 cents, while Ballard Power Systems hung on to gains of 34 cents, or 4.4%, to $8.10
Premium Brands Holding Corp. fell $5.15, or 5.9%, the most on the TSX, to $81.76, while the second-biggest decliner was Semafo, down 16 cents to $40.23.
ON BAYSTREET
The TSX Venture Exchange forfeited 0.82 points at 536.15
The 12 Toronto subgroups were evenly divided by noon Monday, as information technology strengthened 0.9%, communications picked up 0.6%, and gold gained 0.5%.
The half-dozen laggards were weighed most by health-care, down 1.9%, while energy and consumer staples each dropped 0.4%.
ON WALLSTREET
Stocks fell on Monday amid lingering U.S.-China trade worries while protests in Hong Kong escalate as investors took a breather from a record-setting rally.
The Dow Jones Industrials remained negative, but had risen to within 17.35 points of breakeven to 27,633.89
The S&P 500 dipped 8.9 points to 3,084.18
The NASDAQ hesitated 21.98 points, to 8,453.34
Cisco Systems was the biggest decliner in the Dow, sliding 2.1%. Exxon Mobil, 3M and Goldman Sachs dipped around 1% each. Those losses were slightly offset by a 5.8% jump in Walgreens Boots Alliance.
In corporate news, Bloomberg News reported private equity company KKR formally approached Walgreens about a potential leveraged buyout. The report comes after sources told the media the drug store chain was thinking about going private.
The major indexes had been on a tear recently that led them to all-time highs. Over the past month, the Dow is up around 3%. The S&P 500 has taken on 4%, and the NASDAQ has risen about 5%.
President Donald Trump said Friday he had not agreed to roll back tariffs on China. Those comments came after the Chinese commerce ministry said that both sides had agreed to cancel existing tariffs in phases. A U.S. official also reportedly said both sides agreed to roll back the tariffs in tranches.
The stock market’s recent move to record highs comes in part because of improving sentiment around U.S.-China trade talks. With his comments on Friday, Trump dampened trade expectations in the market.
Bond markets in the U.S. were closed for Veterans Day
Oil prices retreated 39 cents to $56.85 U.S. a barrel.
Gold prices fell $7.50 to $1,455.40 U.S. an ounce.
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