Canada's main stock index opened lower on Tuesday as energy stocks fell nearly 4% due to lower oil prices, while investors turned cautious ahead of the U.S. Federal Reserve's two-day meeting.
The S&P/TSX Composite Index sank 158.6 points, or 1%, to 15,816.31.
The Canadian dollar retreated 0.32 cents at 74.42 cents U.S.
Scotiabank raised the rating on Bombardier to sector perform from underperform. Bombardier soared 9.5 cents, or 16.4%, to 67.5 cents.
Scotiabank raised the target price on Canadian National Railway to $139.00 from $120.00. CNR shares doffed 41 cents to $121.29.
Canaccord Genuity initiated coverage on Endeavour Mining at a "Buy" rating, with a 12-month target price of $38.50. Endeavour shares began Tuesday up 37 cents, or 1.2%, to $31.38.
The oil-producing nations that make up OPEC+ (Organization of the Petroleum Exporting Countries) on Saturday agreed to extend record cuts of 9.7 million barrels per day (bpd) until the end of July.
Saudi Arabia, however, later said it, Kuwait and the United Arab Emirates would not extend cuts of 1.18 million bpd they are currently making on top of that OPEC+ target.
ON BAYSTREET
The TSX Venture Exchange fell 0.3 points to 564.82.
All but three of the 12 TSX subgroups were in the red during the first hour, with energy sliding 3.3%, while real-estate and utilities were each down 2.4%.
The three gainers were gold, up 2.8%, materials, ahead 1.3%, and information technology, better by 0.3%.
ON WALLSTREET
Stocks fell sharply on Tuesday as investors took some money off the table following a relentless comeback rally that pushed the S&P 500 into positive territory for the year amid a recession from the coronavirus pandemic.
The Dow Jones Industrials gave up most of their gains from Monday, falling 391.76 points, or 1.4%, to commence Tuesday trading at 27,180.68. That decline put the 30-stock average on pace to snap a six-day winning streak.
The S&P 500 gave back 37.05 points, or 1.2%, to 3,195.34.
The NASDAQ fell back from its all-time high by 45.69 points to 9,879.05.
The speculative trades that have led the latest leg of the market’s comeback on optimism about the reopening of the economy were lower Tuesday.
United Airlines and Delta Air Lines each dropped more than 10%. Cruise lines Carnival and Royal Caribbean declined more than 7.4%. Retail-related trades Gap and Simon Property Group dropped as well.
Prices for the 10-Year Treasury were sharply higher, lowering yields to 0.80% from Monday’s 0.87%. Treasury prices and yields move in opposite directions.
Oil prices lopped off 27 cents to $37.92 U.S. a barrel.
Gold prices regained $21.10 to $1,726.20 U.S. an ounce.
