Canada's main stock index fell on Tuesday as data showed manufacturing activity lost further momentum last month, while U.S. House of Representatives Speaker Nancy Pelosi's expected visit to Taiwan dented global sentiment.
The TSX faltered 165.29 points, to begin Tuesday and August at 19,527.63, after a week in which the index gained 3.5%.
The Canadian dollar collapsed 0.21 cents to 77.65 cents U.S.
Markets in Canada were shuttered Monday for Civic Day.
The seasonally adjusted S&P Global Canada Manufacturing Purchasing Managers’ Index registered at 52.5 in July, down from 54.6 in June. The latest reading signaled 25 continuous months of growth.
ON BAYSTREET
The TSX Venture Exchange gained 4.22 points, to 650.26.
Eight of the 12 TSX subgroups moved lower in Tuesday’s first hour, with energy sputtering 2.7%, communications diving 1.3%, and financials, worse off 1.1%.
The four gainers were led by gold, brighter 2.2%, health-care, up 1.7%, and information technology improving 1%.
ON WALLSTREET
Stocks fell Tuesday morning as investors weigh tensions between the U.S. and China ahead of an expected visit to Taiwan by House Speaker Nancy Pelosi while continuing to watch earnings and economic data.
The Dow Jones Industrials tumbled 238.62 points to open Tuesday at 32,559.78, weighed down by Caterpillar, which opened more than 4% lower after reporting disappointing quarterly earnings.
The S&P 500 weakened 16.63 points to 4,102.
The NASDAQ dropped 37.92 points to 12,331.06.
Pelosi is expected to land in Taiwan Tuesday morning and spend the night there, Reuters reported. Leading up to the trip, Chinese officials threatened to act if Pelosi moved forward with the visit. Pelosi would become the first House Speaker since Newt Gingrich in 1997 to visit Taiwan.
Traders are also awaiting another raft of earnings from companies such as Starbucks, PayPal and Advanced Micro Devices.
On the economic data front, investors this week are awaiting the July nonfarm payrolls report slated for release Friday for further clues into the state of the economy and the job market.
Treasury prices fell Tuesday, raising yields to 2.64%, from Monday’s 2.60%. Treasury prices and yields move in opposite directions.
Oil prices inched higher four cents to $93.93 U.S. a barrel.
Gold prices hiked $14.00 to $1,801.70 U.S. an ounce.
