Canada's main stock index fell on Friday as worries over NAFTA negotiations overshadowed a stronger-than-expected domestic economic growth that raised expectations of another interest rate hike.
The S&P/TSX Composite Index handed over 59.63 points to move towards noon hour at 16,144.99
The Canadian dollar gained 0.63 cents to 77.36 cents.
Canada on Thursday shrugged off U.S. President Donald Trump's criticism that talks to modernize the North American Free Trade Agreement were moving too slowly and made clear it had to keep negotiating as long as there was a chance of success.
The Bank of Canada will continue to raise interest rates gradually, Governor Stephen Poloz said on Thursday, stressing that despite economic uncertainties, the bank did not want to let inflation momentum build.
Bank of Montreal, down 86 cents to $107.04, and Bank of Nova Scotia, off 50 cents to $77.18, proved the biggest laggards on the financial group.
Leading declines among energy stocks were Enbridge, falling 39 cents to $41.91, Canadian Natural Resources, sliding 51 cents, or 1.2%, to $42.57, and TransCanada Corp, down 21 cents to $52.35.
The largest percentage gainers on the TSX were Blackberry, which jumped $2.16, or 16.3%, to $15.43, after posting better-than-expected quarterly profit and Nexgen Energy, which rose eight cents, or 3.1%, to $2.65.
Aurora Cannabis rocketed 67 cents, or 5.7%, to $12.35, while Magna International was down $1.62, or 2.3%, to $68.28.
On the economic slate, Statistics Canada reported that real gross domestic product grew 0.2% in July after essentially no change in June. This increase was concentrated as 12 of 20 sectors were up, led by growth in manufacturing, wholesale trade, utilities and transportation and warehousing.
Elsewhere, the agency’s industrial product price index was down 0.5% in August, mainly due to lower prices for primary non-ferrous metal products.
The Raw Materials Price Index fell 4.6%, largely reflecting lower prices for crude energy products.
ON BAYSTREET
The TSX Venture Exchange regained 5.91 points to 704.33
Eight of the 12 subgroups were lower, as consumer discretionary and industrials stocks each surrendered 0.9%, while communications lost 0.7%
The four gainers were led by health-care, soaring 2.1%, information technology, improved 0.9%, and materials were better by 0.3%
ON WALLSTREET
Stocks rose slightly on Friday, erasing earlier losses, as strong gains in Intel pushed tech shares higher.
The Dow Jones Industrials moved sharply into the green 54.42 points nearing lunch hour to 26,494.35, led by Intel and Boeing.
The S&P 500 moved higher 4.89 points to 2,918.89, as tech gained 0.5%
The NASDAQ regained 11.59 points to 8,053.55
Intel shares jumped to trade nearly 3% higher after interim CEO Bob Swan said the company would be able to meet its full-year revenue outlook. The gains also lifted the S&P 500 tech sector, which was up 0.8% for the week.
Tesla shares plummeted more than 10% after the Securities and Exchange Commission sued CEO Elon Musk for fraud. While sources close to the company told the media that the firm was also expecting to be sued, Tesla wasn't, however, named as a defendant in the complaint.
The U.S. and Canada have not yet come to an agreement on trade as a Sept. 30 deadline rapidly approaches. The two countries are trying to come to terms so Canada can join a trade deal struck between the U.S. and Mexico that would replace the current North American Free Trade Agreement (NAFTA), which has been heavily criticized by President Donald Trump.
U.S. Trade Representative Robert Lighthizer said Tuesday the U.S. was ready to move ahead on a new NAFTA deal without Canada.
Consumer spending rose 0.3% in August while the personal consumption expenditures price index, the Federal Reserve's preferred measure of inflation, rose 2% on a year-over-year basis.
Prices for the benchmark for the 10-year U.S. Treasury gained, lowering yields to 3.04% from Thursday’s 3.05%. Treasury prices and yields move in opposite directions.
Oil prices prospered $1.14 to $73.26 U.S. a barrel.
Gold prices regained $8.20 to $1,195.60 U.S. an ounce.
