Equities in Canada’s biggest centre finished in the red Tuesday, as energy and utilities faded and consumer stocks also pointed to a downward path.
The S&P/TSX Composite Index dropped 47.82 points to conclude Tuesday trading at 16,159.50
The Canadian dollar inched downward 0.02 cents to 77.20 cents.
As the month-end deadline for North American trade talks nears, Canadian executives who hedge foreign exchange risk have been changing their strategies so their companies can profit from any possible swings in the Canadian dollar.
Adding to the positive sentiment, Prime Minister Justin Trudeau took a cautious line over talks to update NAFTA, saying he saw a possibility that Canada could build on a bilateral deal that the United States and Mexico have already agreed.
Consumer discretionary stocks proved the biggest anchor on the market, as Magna International took a dive of $3.20, or 4.5%, to $68.07, while Gildan Activewear docked six cents to $38.50.
Energy stocks got bruised in the afternoon, as Suncor Energy fell 86 cents, or 1.7%, to $50.29, while rival Canadian Natural Resources dipped 17 cents to $42.52.
Among utilities, Hydro One fell two cents to $19.56, though Fortis Inc. nicked up four cents to $$42.01.
In health-care, Aurora Cannabis jumped 42 cents, or 3.4%, to $12.69, after it issued its fourth-quarter report. Rival Canopy Growth took on 36 cents to $68.31.
In gold, stocks were given a shot in the arm by a gain of 17 cents, or 1.2%, in Barrick Gold, to $14.47, adding to Monday's rally, while Kinross Gold inched up two cents to $3.84.
In materials, Agnico Eagle Mines gained 97 cents, or 2.2%, to $45.43, while First Majestic Silver gained a dime, or 1.3%, to $7.35.
ON BAYSTREET
The TSX Venture Exchange dropped 5.54 points to 708.68
Eight of the 12 subgroups were lower, as consumer discretionary stocks removed 0.9%, while utilities and energy each went south 0.5%.
The four gainers were led by health-care, haler by 0.8%, while gold and materials each capitalized 0.6%.
ON WALLSTREET
Stocks slipped on Tuesday as the Trump administration reiterated its hard-line stance on trade, washing out solid gains in tech shares.
The Dow Jones Industrials slumped 69.84 points to finish at 26,492.21,
The S&P 500 slid 3.81 points to 2,915.56, as losses in utilities off set a rise in energy.
The NASDAQ gained 14.22 points to 8,007.47, as Amazon and Apple shares rose. Google-parent Alphabet also climbed on Tuesday
President Donald Trump said at the United Nations General Assembly the U.S. "will no longer tolerate abuse" on trade. "We will not allow our workers to be victimized, our companies to be cheated and our wealth to be plundered and transferred," Trump added.
Trump's comments come after U.S. Trade Representative Robert Lighthizer said the U.S. was prepared to move ahead on a trade deal with Mexico that excluded Canada. Lighthizer said negotiations with Canada are at an impasse.
Shares of Ford fell 2.1% and General Motors fell 3.5%, following Lighthizer's comments.
Trade fears have kept investors on edge for most of this year as they assess the potential ramifications of more protectionist policies around the world.
Energy stocks rose broadly, led by Concho Resources and Baker Hughes. Both shares rose more than 2%.
Facebook's stock dropped 0.3% after Instagram's co-founders left the company. Analysts at J.P. Morgan said their departure could lead to a
significant pullback in the short term.
Apple shares initially fell after Qualcomm accused the tech giant of stealing secrets and giving them to Intel. The stock recovered, however, to close 0.6% higher.
The rise in bond yields came as the Federal Open Market Committee begins its two-day monetary policy meeting, with analysts expecting the U.S. Federal Reserve to announce a quarter-point rate hike when it concludes its meeting tomorrow.
The event will be watched closely to see if the central bank provides any signals as to where monetary policy will be heading over the coming months and into next year.
Prices for the benchmark for the 10-year U.S. Treasury faded, raising yields to 3.10% from Monday’s 3.08%. Treasury prices and yields move in opposite directions.
Oil prices gained 20 cents to $72.28 U.S. a barrel.
Gold prices picked up $1.20 to $1,205.60 U.S. an ounce.
