Canada's main stock index lagged on Tuesday, as materials and technology stocks declined on the back of weak services sector data from China, while investors braced for the Bank of Canada's (BoC) interest rate decision this week.
The TSX eased off from the dizzy heights of last week, losing 42.15 points, or 1.3%, to open Tuesday and a short week at 20,503.21.
The Canadian dollar slid 0.12 cents to 73.41 cents U.S.
Markets throughout North America were shuttered Monday for Labour Day
ON BAYSTREET
The TSX Venture Exchange eked ahead 1.53 points to 593.05.
Eight of the 12 TSX subgroups wilted in the first hour on Tuesday, with gold duller in price 1.1%, information technology down 1%, and materials fading 0.9%.
The four gainers were led by health-care, vaulting 2.6%, energy, ahead 1.2%, and consumer staples, better by 0.5%.
ON WALLSTREET
Stocks fell Tuesday to kick off the first trading day of a holiday-shortened week, weighed by a jump in crude oil prices.
The Dow Jones Industrials moved downward 51.08 points to begin the week at 34,786.63.
The S&P 500 index declined 9.51 points to 4,506.26.
The NASDAQ index dipped 26.6 points to 14,005.21.
Oil prices rose after Saudi Arabia extended its one-million-barrels per day voluntary oil production cuts. West Texas Intermediate futures popped 2% to trade above $87 per barrel, reaching their highest levels since November. The new lifted energy stocks, with the S&P 500 sector last up more than 1.3%. Shares of Halliburton, Occidental Petroleum and EOG Resources added more than 2% each.
The rise in oil prices pressured airline and cruise stocks, with American Airlines, United Airlines, Delta Air Lines and Royal Caribbean last down more than 2% each. Carnival was among the biggest laggards, last down nearly 5%.
Over the extended holiday weekend, Goldman Sachs cut its recession odds to 15% and said it anticipates the Federal Reserve skipping a rate hike at its policy meeting later this month.
While this could be seen as good news for the market, investors have to contend with September’s seasonal effects, which historically marks the weakest month for equities.
Prices for the 10-year Treasury sagged, raising yields to 4.25% from Friday’s 4.18%. Treasury prices and yields move in opposite directions.
Oil prices climbed $1.54 to $87.09 U.S. a barrel.
Gold prices flopped $15.40 to $1,951.70 U.S. an ounce.
