Canada's main stock index fell by triple digits on Friday as worries over negotiations over updating the North American Free Trade Agreement overshadowed a stronger-than-expected domestic economic growth that raised expectations of another interest rate hike.
The S&P/TSX Composite Index fell earthward 131.48 points to close the day and the week at 16,073.14
The Canadian dollar grew 0.68 cents to 77.42 cents.
Canada on Thursday shrugged off U.S. President Donald Trump's criticism that talks to modernize NAFTA 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.
Magna International was down $1.94, or 2.8%, to $67.96, while Canadian Tire slumbered $4.07, or 2.6%, to $151.37.
Communications stocks also suffered with BCE, falling 55 cents, or 1%, to $52.31, while Rogers Communications slid $1.04, or 1.5%, to $66.28.
Leading declines among energy stocks were Enbridge, falling 56 cents, or 1.3%, to $41.75, and Canadian Natural Resources, sliding 87 cents, or 2%, to $42.21.
Aurora Cannabis rocketed 69 cents, or 5.9%, to $12.37, while Bausch Health Companies took on 44 cents, or 1.3%, to $33.17.
Among utilities, Hydro One gained 12 cents to $19.66. In real-estate, Colliers International Group tallied 35 cents to $100.00.
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 rumbled forward in a big way, gaining 10.74 points, or 1.5%, to 709.16
All but three of the 12 subgroups were lower, as consumer discretionary dug 1.7% lower, communications lost 1.1%, and energy stocks were 1% less energetic.
The three gainers were health-care, soaring 2.5%, utilities, inching up 0.3%, and real-estate, eking up but 0.02%.
ON WALLSTREET
Stocks closed little changed on Friday as investors wrapped up a quarter that featured strong gains.
The Dow Jones Industrials gained 18.38 points to finish the week at 26,458.31, as Intel and Boeing outperformed.
The S&P 500 dropped a mere 0.02 points to 2,913.98,
The NASDAQ gained 4.39 points to 8,046.35
For the quarter, the S&P 500 rose 7.2%, its best quarterly gain since fourth quarter 2013. The NASDAQ also notched a 7.1% quarterly gain, its best since first quarter 2017. The Dow outperformed in the third quarter, rising 9.3%.
Intel shares jumped to close 3.1% 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.
Boeing rose more than 1% after winning a $9.2-billion Pentagon contract to build the next Air Force training aircraft.
Tesla shares plummeted nearly 14% 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 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 slid, raising yields to 3.06% from Thursday’s 3.05%. Treasury prices and yields move in opposite directions.
Oil prices prospered $1.36 to $73.48 U.S. a barrel.
Gold prices gained $8.10 to $1,195.50 U.S. an ounce.
