Equities in Canada’s largest market fell on Friday, pressured by weakness in energy and bank stocks, while data showed domestic retail sales fell in January further denting sentiment.
The TSX was behind Thursday’s close by 18.35 points to break for noon EDT at 18,818.12, coming off its lows of the morning.
The Canadian dollar slid 0.18 cents at 79.87 cents U.S.
Teck Resources fell $1.08, or 4%, the most on the TSX, to $25.97, followed by fuel-cell products maker Ballard Power Systems, down 23 cents to $30.75.
The largest percentage gainer on the TSX was Kirkland Lake Gold, picking up 85 cents, or 2%, to $43.78, and NovaGold Resources, up two cents to $2.21
On the economic slate, Statistics Canada said retail sales fell for the second consecutive month, down 1.1% to $52.5 billion in January, primarily because of lower sales at clothing and clothing accessories stores, furniture and home furnishings stores, and sporting goods, hobby, book and music stores.
Elsewhere, the International Monetary Fund said Canada's economy is likely to rebound this year as long as COVID-19 is brought under control, but the government should introduce a "fiscal anchor" to ensure credibility in debt management.
ON BAYSTREET
The TSX Venture Exchange gained 4.49 points to 984.49
Seven of the 12 TSX subgroups moved into the green by lunch time, with health-care sprouting 1.6%, energy, better by 1.5%, and consumer discretionary stocks, up 0.9%.
The five laggards were weighed most by industrials, down 1%, while communications lost 0.7%, and financials shed 0.6%.
ON WALLSTREET
The Dow Jones Industrial Average fell on Friday after the Federal Reserve’s decision to not extend a pandemic-era capital break for banks stoked a rise in bond yields and a sell-off in financials.
The 30-stock index came off its lows of the morning, but remained down 141.33 points by midday Friday at 32,720.97.
The S&P 500 eked its way 2.66 points into the green at 3,918.12.
The NASDAQ Composite regrouped 77.22 points to 13,139.39, as investors bought the dip in tech shares.
Bank stocks sold off in unison following the Fed’s decision. JPMorgan and Wells Fargo both slid more than 3%, while Goldman Sachs fell 1.5%. Bank of America also slipped 3%. These names got a lift earlier this week from rising rates and have all rallied double digits this year.
Shares of FedEx jumped 6% Friday after the delivery company beat expectations on the top and bottom lines for its fiscal third quarter.
Nike’s stock slipped by 4% after third-quarter revenues were weaker than anticipated.
The major averages were on track to post a losing week. The S&P 500 is off by 0.9% this week and the NASDAQ is down 1.3%. The Dow has dipped 0.3%.
The central bank on Friday declined to extend a rule expiring at the end of the month that relaxed the supplementary leverage ratio for banks during the pandemic. The rule allowing banks to hold less capital against Treasurys and other holdings was implemented to calm the bond market during the crisis and encourage banks to lend.
The decision could have some adverse effects, traders have warned, if in response banks sell some of their Treasury holdings. That could send yields even higher at a time when a rapid rise in rates is already unnerving investors.
Prices for 10-Year Treasurys slipped, raising yields to 1.72% from Thursday’s 1.71%. Treasury prices and yields move in opposite directions.
Oil prices regained 56 cents to $60.56 U.S. a barrel.
Gold prices gained four dollars to $1,736.50.
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