Stocks in Toronto lost ground on Tuesday as financial issues weighed after the country's trade deficit unexpectedly jumped and exports slumped, while energy companies pulled back with oil prices near a one-month low.
The S&P/TSX Composite Index moved off its lows of the morning, but was a good 41.44 points below breakeven to approach noon at 13,294.71
The Canadian dollar remained negative 0.4 cents to 76.01 cents U.S.
Heavyweight banks such as Royal Bank of Canada dropped 0.7% to $74.26, while Toronto-Dominion Bank slid 0.8% to $55.70. Manulife Financial declined 1.7% to $17.69.
Health-care stocks rose, as shares in Valeant Pharmaceuticals International Inc advanced 7.3% to $36.82 after the embattled drug maker said a board committee had found no need for additional accounting restatements.
Among gold issues, Barrick Gold advanced 2% to $18.00 and Goldcorp added 1.2% to $21.01.
On the economic front, our international merchandise trade deficit with the world widened from $628 million in January to $1.9 billion in February, according to Statistics Canada.
The agency went on to say Canada's exports fell 5.4% to $43.7 billion in February, after reaching a record high in January. Export prices decreased 3.2% and volumes were down 2.2%. Imports declined 2.6% to $45.6 billion, as prices were down 1.4% and volumes decreased 1.2%.
ON BAYSTREET
The TSX Venture Exchange stayed afloat 1.01 points to 583.76
Nine of the 13 TSX subgroups were lower by midday, as consumer staples tailed 1.2%, financials slid 0.9%, and industrials lost 0.7%.
The four gainers were led by gold, up 3.4%, materials, up 1.9%, and metals and mining, gaining 1%.
ON WALLSTREET
U.S. stocks traded lower Tuesday, following declines in overseas developed markets, despite better domestic data.
The Dow Jones Industrials fell 78.84 points to 17,658.52, Boeing contributing the most to gains, while Disney and Goldman Sachs contributed the most to declines.
The S&P 500 docked 18.02 points to 2,048.11. Health-care and financials, the only S&P 500 sectors negative year-to-date, traded about 1% lower as all S&P 500 sectors declined in late-morning trade.
The NASDAQ index slid 33.46 points to 4,858.34.
Late Monday, Disney unexpectedly announced Thomas Staggs, chief operating officer and a potential successor to CEO Bob Iger, will leave the company this year.
Shares of Allergan fell more than 15% to a 52-week low after the U.S. Treasury Department late Monday took new steps to curb tax-avoiding "inversion" deals in which a U.S. company reincorporates overseas following the purchase of a foreign company. Dublin-based Allergan had agreed to be bought by Pfizer in the biggest inversion deal ever.
On the economic front, the Institute for Supply Management non-manufacturing Purchasing Managers Index came in at 54.5, up from February's 53.4 print. The U.S. Markit services PMI for March came in at 51.3, up from 49.7 in February.
Prices for the 10-year Treasury gained sharply, lowering yields back to 1.74% from Monday’s 1.77%. Treasury prices and yields move in opposite directions.
Oil prices nosed up three cents a barrel to $35.73 U.S.
Gold prices spiked $14.77 to $1,230.20 U.S. an ounce.
