Equities for stocks in Toronto fell on Tuesday as prospects of aggressive tightening by central banks to tame inflation stoked concerns of
a global economic slowdown, while a rally in crude prices limited the fall.
The S&P/TSX retreated 191.9 points to begin Tuesday at 20,727.50.
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 rocketed 30 cents, or 1%, to $30.08.
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 10.25 points, or 1.4%, to 727.58.
All but one of the 12 TSX subgroups went downward in the first hour, with health-care and information technology each crumbling 2%, while industrials erased 1.4%.
Energy pointed upward 0.5%, the lone eagle.
ON WALLSTREET
U.S. stocks fell Tuesday, as momentum on Wall Street faded following the S&P 500's best week since 2020.
The Dow Jones Industrials plunged 391.19 points, or 1.2%, to begin a shortened week at 32,821.77.
The S&P 500 subtracted 50.09 points, or 1.2%, to 4,108.15
The NASDAQ Composite erased 167.27 points, or 1.4%, to 11,963.86.
After a holiday hiatus Monday, U.S. stocks are on track to close the month lower despite last week’s massive rally. The Dow and the S&P 500 are both down less than 1% in May, while the NASDAQ is off by more than 2%.
Industrial stocks linked to the economic cycle fell Tuesday, weighing on the Dow. 3M, Honeywell and Boeing each lost about 2%.
Health-care was the worst-performing S&P sector, down 1.8% Tuesday. Johnson & Johnson led the Dow to the downside, off by nearly 3%.
Energy stocks were the only positive sector Tuesday. Marathon Oil jumped more than 5%, while Diamondback Energy rose about 4% and Occidental Petroleum gained more than 3%.
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 2.86% from Friday’s 2.74%. Treasury prices and yields move in opposite directions.
Oil prices moved higher $3.79 to $118.86 U.S. a barrel.
Gold prices lost $2.50 to $1,848.80 U.S. an ounce.
