Canada's main stock index got bruised Tuesday, after Canada failed on Friday to reach a deal with the United States to revamp the North American Free Trade Agreement.
The S&P/TSX Composite Index tumbled 101.58 points to close Tuesday at 16,161.30
The Canadian dollar slouched 0.48 cents to 75.9 cents.
Tahoe Resources fell 97 cents, or 21.6%, the most on the TSX, to $3.52, after Guatemala's highest court upheld the suspension of licenses at Tahoe's Escobal mine, one of the world's biggest silver mines, and at the company's smaller Juan Bosco mine.
The second biggest decliner was First Quantum Minerals, which fell $1.02, or 6.2%, to $15.35.
Golds sank sharply, as Goldcorp doffed 63 cents, or 4.5%, to $13.47, while Kinross Gold fell 15 cents, or 3.9%, to $3.75.
In the energy patch, Imperial Oil slid 34 cents to $40.33, while Suncor subsided 92 cents, or 1.7%, to $52.80.
The largest percentage gainers and most heavily traded stocks on the TSX were cannabis companies. Canopy Growth Co jumped $9.06, or 15.2%, to $68.70, and Aphria Inc. rose $1.56, or 9.2%, to $18.54.
Among tech stocks, BlackBerry gained 12 cents, or $14.01, while Shopify grew $2.74, or 1.4%, to $192.60.
U.S. President Donald Trump on Friday notified Congress of his intent to sign a bilateral deal with Mexico, after contentious talks with Canada ended without a deal to revamp NAFTA.
On the economic beat, the seasonally adjusted IHS Markit Canada Manufacturing Purchasing Managers’ Index dropped fractionally to 56.8 in August, from 56.9 in July, to signal the weakest overall improvement in business conditions since May.
The agency goes on to say slower new business growth was the main factor weighing on the headline index in August. Nonetheless, the latest reading remained well above the long-run survey average of 53.0.
ON BAYSTREET
The TSX Venture Exchange discarded 6.58 points to 718.13
All but two of the 12 subgroups remained in the red on the day, as gold dulled in price 2.5%, materials slumped 1.9%, and energy skidded 1.6%
The two gainers were health-care, up 4.5%, while information technology moved ahead 0.2%.
ON WALLSTREET
Stocks fell on Tuesday as trade tensions between the U.S. and key partners increased to start off the one of the toughest parts of the year for equity investors.
The Dow Jones Industrial Average came off its lows of the day, scrambling toward breakeven and falling 12.34 points short at 25,952.48, as Nike and Verizon lagged.
The S&P 500 subsided 4.8 points to 2,896.72, with telecom and real estate lagging.
The NASDAQ fell 18.29 points to 8,091.25, led by a decline in Facebook shares, which counterbalanced a gain in Amazon that made it the second U.S.-company to reach $1 trillion in market cap.
September has historically been a tough part of the year for investors. Since 1950, September has been the worst month for the Dow and the broader S&P 500. The Dow averages a decline of 0.7% while the S&P 500 falls 0.5% on average in September. The NASDAQ, which was introduced in 1971, falls 0.5% on average.
Last week, the U.S. and Canada failed to secure an agreement to replace the current NAFTA pact by last Friday's deadline. While a deal has been arranged with Mexico, President Donald Trump tweeted over the weekend that there was "no political necessity to keep Canada in the new NAFTA deal."
Shares of trade-sensitive Caterpillar dropped nearly 0.7%.
Facebook shares dropped 2.6% after analysts at MoffettNathanson downgraded them to neutral from buy. The analysts a "toxic brew" of slowing sales growth and regulation risk.
Nike's stock fell 3.2% amid backlash over a campaign featuring Colin Kaepernick, a former San Francisco 49ers quarterback. Kaepernick has been a polarizing figure since 2016, when he decided to kneel during the national anthem as a protest to racial injustice.
Dow-member Verizon dropped more than 2% after analysts at Barclays downgraded them to equal weight from overweight. The analysts pointed to the stock's high valuation, with caps "upside potential."
Amazon shares rose as much as 1.9%, briefly pushing the company's market cap to $1 trillion. The milestone comes about a month after Apple, another tech giant, became the first U.S. publicly traded company to reach $1 trillion in market cap.
The major indexes pared losses after the release of stronger-than-expected manufacturing data. The Institute for Supply Management U.S. manufacturing Purchasing Managers’ Index rose to 61.3 in August from 58.1 in July. Economists expected the index to fall to 57.7. The overall PMI got a boost from a sharp jump in new orders.
Prices for the benchmark for the 10-year U.S. Treasury lost ground, raising yields to 2.90% from Friday’s 2.87%. Treasury prices and yields move in opposite directions.
Oil prices dropped off 50 cents to $69.30 U.S. a barrel.
Gold prices drooped $7.90 cents to $1,198.80
