Equities in Toronto opened lower on Tuesday, as fresh worries about an escalation in the trade dispute between the United States and China kept investors risk averse.
The S&P/TSX Composite Index began Tuesday down 132.4 points at 16,361.06
The Canadian dollar skidded 0.14 cents to 74.20 cents
WestJet Airlines reported a quarterly profit that beat analysts' estimates, as the Canadian carrier flew more passengers to the United States and other overseas destinations. WestJet shares were airborne 61 cents, or 3.2%, to $19.45.
RBC raised the price target on Air Canada to $46 from $43. The Maple Leaf airline’s shares acquired 51 cents, or 1.5%, to $35.79.
Canaccord Genuity cut the rating on IAMGOLD to "hold" from "buy”, and the price target to $3.75 from $7.00. IAMGOLD slumbered 43 cents, or 11%, to $3.47.
CIBC raised the target price on Stella-Jones to $53.00 from $51.00. Stella-Jones shares docked three cents to $45.51.
Economically speaking, Western University’s IVEY School of Business said its Purchasing Managers Index inched up to 55.9, compared to 54.3 in March, but still way below the 71.5 reading for April 2018.
ON BAYSTREET
The TSX Venture Exchange was negative 1.23 points to begin trading Tuesday at 602.39
Eight of the 12 Toronto subgroups were negative in the first hour, with energy sliding 2.1%, health-care off 1.2%, and materials down 1.1%.
The four gainers were led by communications, gold and consumer staples, each climbing a mere 0.1%.
ON WALLSTREET
Stocks fell on Tuesday after a top U.S. trade official indicated that higher tariffs on Chinese goods are coming later this week.
The Dow Jones Industrials slumbered 306.33 points, or 1.2%, to 26,132.15,
The S&P 500 withered 36.45 points, or 1.2%, to 2,896.02, as the energy sector lagged.
The NASDAQ Composite index tumbled 108.25 points, or 1.3%, to 8,015.04
Shares of trade bellwethers Caterpillar and Boeing fell more than 1% each. Chipmakers, meanwhile, led the tech sector lower. KLA-Tencor dropped 5.8%. Applied Materials and Lam Research fell more than 2% each.
U.S. Trade Representative Robert Lighthizer told reporters that the U.S. will increase levies on Chinese imports on Friday.
Lighthizer made his remarks after President Donald Trump tweeted he would raise current tariffs 10% on $200 billion of Chinese goods to 25% on Friday. He also threatened to impose an extra 25% levy on another $325 billion of Chinese goods “shortly.”
Prices for the benchmark 10-year U.S. Treasury strengthened, lowering yields to 2.47% from Monday’s 2.50%. Treasury prices and yields move in opposite directions.
Oil prices staggered $1.18 to $61.07 U.S. a barrel.
Gold prices slid $1.60 to $1,282.20 U.S. an ounce.
