Canada's main stock index fell on Tuesday, as worries about deterioration in trade negotiations between the United States and China made investors wary of riskier assets.
The S&P/TSX Composite Index approached noon down 156.32 points Tuesday, or 1%, at 16,337.14
The Canadian dollar skidded 0.10 cents to 74.24 cents
IAMGOLD fell 47 cents, or 12.1%, the most on the TSX, to $3.43, after the gold miner reported quarterly revenue below estimates. The second biggest decliner was Hudbay Minerals, down 76 cents, or 8.7%, to $8.00 after results.
The largest percentage gainers on the TSX were Kirkland Lake Gold, which rose $1.93, or 4.7%, to $ and WestJet Airlines that jumped 49 cents, or 2.6%, to $19.33, after their results.
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 1.45 points to pause for lunch at 602.14
All but three of the 12 Toronto subgroups were negative throughout the morning, with health-care off 1.7%, energy subsiding 1.6%, and information technology sliding 1.5%.
The three gainers were gold, up 1.1%, while consumer staples and communications each jumped 0.3%.
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 jettisoned 441.32 points, or 1.7%, to 25,997.16
The S&P 500 shrank 43.93 points, or 1.5%, to 2,888.54, as the tech sector lagged.
The NASDAQ Composite index tumbled 132.91 points, or 1.6%, to 7,990.38
Shares of trade bellwethers Caterpillar and Boeing fell 2.4% and 3.3%, respectively. Boeing also broke below its 200-day moving average for the first time since January. Chipmakers, meanwhile, led the tech sector lower, as KLA-Tencor dropped 6.4%.
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 2.46% from Monday’s 2.50%. Treasury prices and yields move in opposite directions.
Oil prices staggered 77 cents to $61.48 U.S. a barrel.
Gold prices regained $1.40 to $1,285.20 U.S. an ounce.
