Canada's main stock index looked to break a seven-day winning streak on Tuesday, as prospects of aggressive monetary tightening by central banks stoked concerns of a global economic slowdown.
The S&P/TSX retreated 166.6 points, off their lows of the morning, to pause for lunch Tuesday at 20,752.74.
The Canadian dollar backtracked 0.02 cents to 78.99 cents U.S.
Cenovus Energy and its partners have agreed to
restart the West White Rose oilfield project offshore Newfoundland and Labrador in 2023.
Cenovus shares gained 13 cents to $29.91.
The largest percentage gainer on the TSX was Yamana Gold which jumped 18 cents, or 2.7%, to $6.93, after South Africa's Gold Fields
Ltd made a $6.7-billion offer for the gold miner.
As Ontario looks set to keep in office leaders promising to increase spending, its higher debt load compared to other provinces could reduce the appeal of its bonds in an environment where interest rates are rising and its housing market is starting to cool.
On the economic calendar, Statistics Canada reported Tuesday gross domestic product rose 0.7% in March, led by growth in client-facing industries.
ON BAYSTREET
The TSX Venture Exchange fell 15.1 points, or 2.1%, to 722.73.
All but two of the 12 TSX subgroups remained red midday, with gold dulling in price 2.4%, information technology down 1.5%, while health-care erased 124%.
The two gainers proved to be consumer staples, better by 0.3%, and communications, inching up 0.1%.
ON WALLSTREET
U.S. stocks fell Tuesday as investors look to close out a wild month of trading.
The Dow Jones Industrials dipped 112.43 points, to greet noon hour EDT at 33,100.53, digging out of a pronounced gulch first thing Tuesday morning.
The S&P 500 fought to within 9.62 points to 4,148.62
The NASDAQ Composite poked ahead 4.7 points to 12,135.83.
After a holiday hiatus Monday, U.S. stocks are wrapping up May. The Dow and the S&P 500 are both marginally higher on the month, while the NASDAQ is off by around 1.5%.
Industrial stocks linked to the economic cycle fell Tuesday, weighing on the Dow. 3M, Honeywell and Boeing each lost about 2%.
Health-care was among the worst-performing S&P sectors, down 1.4% Tuesday. Johnson & Johnson led the Dow to the downside, off by nearly 2%.
Energy stocks were the top sector Tuesday. Marathon Oil jumped more than 4%, while Diamondback Energy rose about 3% and Devon Energy gained more than 2%.
Traders will look through more corporate quarterly earnings during the holiday-shortened week. Salesforce, HP and Victoria’s Secret are expected to report earnings on Tuesday after the bell.
Treasury prices collapsed, raising yields to 2.85% from Friday’s 2.74%. Treasury prices and yields move in opposite directions.
Oil prices moved higher $2.03 to $117.10 U.S. a barrel.
Gold prices lost $11.60 to $1,839.70 U.S. an ounce.
