Canada's main stock index went south midday Monday, as gains in the financials sector were offset by losses in energy shares.
The S&P/TSX Composite Index shook off initial gains and lost 61.3 points by lunch hour to 16,006.95
The Canadian dollar dropped 0.25 cents at 75.02 cents U.S.
The financials sector gained, after a Reuters poll showed the Bank of Canada may hike its key interest rate once again later this year.
The BoC still aims to take the overnight rate, currently at 1.75 percent, up closer to what it says is the neutral range but there is now a small chance of a cut, according to economists polled by Reuters.
Shares of Alaris Royalty Corp were up 37 cents, or 1.9%, to $20.13, leading among financials, followed by a 19-cent rise, or 1%, in CI Financial Corp., to $19.02.
The energy sector plummeted, pressured by a near 6.1% drop in shares of Enbridge, after the company delayed its line 3 pipeline. Enbridge shares lost $3.01 to $46.50.
The top percentage gainer on the TSX was shares of Aphria Inc, which rose 16 cents, or 1.2%, to $13.64, after the cannabis producer received a license to increase production from Health Canada.
ON BAYSTREET
The TSX Venture Exchange lost 1.95 points to 623.21
Seven of the 12 TSX subgroups had ducked below breakeven by lunch hour, with energy slumping 2.5%, information technology weaker by 1.5%, and health-care off 1.1%.
The five gainers were co-led by industrials and financials, each up 0.5%, while utilities doggedly moved higher 0.2%.
ON WALLSTREET
Stocks gave back their earlier gains on Monday as Wall Street digested weak U.S. economic data while trade talks with China neared the finish line.
The Dow Jones Industrial Average dropped 261.9 points, or 1%, to 25,764.42, erasing a 129.66-point gain and was on pace for its biggest decline since late January. Boeing was one of the worst performers in the Dow, sliding 2.5%.
The S&P 500 faded 25.51 points to 2,778.18, breaking back below the key 2,800 level and on pace for its biggest drop since Jan. 22.
The NASDAQ Composite was down 70.06 points to 7,525.29
Stocks started giving back their gains after the U.S. Commerce Department said construction spending dropped 0.6% in December. Economists had forecast a gain of 0.2%.
The indexes also rolled over as the S&P 500 tech sector fell 1%. Shares of Salesforce were the biggest decliners in the sector, sliding more than 4% ahead of their quarterly earnings release.
Equities initially rose on news that a trade deal between the U.S. and China could be on the horizon.
Sources told some media outlets that U.S.-China trade negotiations are in the "final stages" as the two sides prepare for a possible summit at Mar-a-Lago at the end of March. If a deal is reached, the U.S. could roll back tariffs on at least $200 billion in Chinese goods while China would remove or cut industry-specific levies like those on autos
However, the U.S. wants the ability to re-impose levies on Chinese goods if talks fail on enforcement mechanisms on intellectual property theft and related matters. According to sources, this is not sitting well with the Chinese.
Prices for the benchmark 10-year U.S. Treasury gained ground, lowering yields to 2.73% from Friday’s 2.77%. Treasury prices and yields move in opposite directions.
Oil prices took on 50 cents to $56.30 U.S. a barrel.
Gold prices slipped $9.60 to $1,289.60 U.S. an ounce.
