TSX dips to lowest level since February despite rising gold prices

TORONTO – Canada’s primary inventory index dipped to its lowest degree since February to start out the week on heightened commerce issues, regardless of gold costs hitting a three-month excessive.

“We’re seeing that commerce tensions and commerce issues proceed to place a component of warning within the general fairness markets,” says Craig Fehr, Canadian markets strategist for Edward Jones.

Chinese language and Mexican commerce fears have not disappeared however Nasdaq dipped into correction territory because the influential know-how sector was hit on information that the Division of Justice could be exploring some antitrust probes affecting Fb, Google father or mother Alphabet Inc. and Amazon. That drove down their shares by as a lot as 7.5 per cent.

“That is significantly related for the markets as a result of it has been these large tech names which have led the momentum to the upside for a lot of this bull market,” he mentioned in an interview.

The S&P/TSX composite index closed down 21.60 factors to 16,015.89, after dipping to an intraday low of 15,960,03, the bottom degree in 15 weeks.

“All in all we’re seeing a really modest down day within the Canadian markets. We’re seeing somewhat bit extra of strain on the worldwide market and the U.S. fairness indexes.”

In New York, the Dow Jones industrial common was up four.74 factors at 24,819.78. The S&P 500 index was down 7.61 factors at 2,744.45, whereas the Nasdaq composite was down 120.13 factors at 7,333.02.

Whereas the know-how hit pushed the sector’s index down 2.66 per cent in Toronto on a four.three per cent drop by Shopify Inc., it accounts for a a lot smaller a part of the market in Canada.

Well being care fell three.68 per cent and the important thing power sector dropped 1.36 per cent on ongoing issues concerning the influence of a slowing world financial system on demand, significantly from China. This occurred regardless of Saudi Arabia indicating that OPEC would proceed provide cuts to assist increase costs.

The July crude contract was down 25 cents US at US$53.25 per barrel and the July pure fuel contract was down 5.1 cents at US$2.40 per mmBTU.

Enbridge Inc. fell four.7 per cent after a Minnesota court docket mentioned state regulators should conduct an extra evaluate for Enbridge Vitality’s plan to exchange its deteriorating Line three crude oil pipeline as a result of the mission’s environmental influence assertion does not tackle the potential for an oil spill into the Lake Superior watershed.

The Toronto market was led by supplies, which gained three per cent as Eldorado Gold was up almost 12 per cent.

The August gold contract was up US$16.80 at US$1,327.90 an oz. and the July copper contract was up one penny at US$2.65 a pound.

The Canadian greenback traded at a mean of 74.24 cents US in contrast with a mean of 73.93 cents US on Friday.

Fehr mentioned the loonie gained because the rate of interest unfold between Canada and the U.S. narrowed as American rates of interest decreased on a market recalibration of development expectations of the U.S. financial system.

The Canadian inventory market will stay unstable, particularly by the quieter summer time buying and selling interval, so long as commerce tensions persist and spill over into anxiousness about world development, he added.

Whereas commerce stays a issues, he mentioned the basics for the 2 international locations stay good.

“The sizable positive factors that the North American fairness markets racked up within the first 4 months of the yr are serving to present a little bit of a cushion towards this pullback.”

— With information from The Related Press.

Corporations on this story: (TSX:ENB, TSX:ELD, TSX:SHOP, TSX:GSPTSE, TSX:CADUSD=X)

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