Tensions Grip G7 Summit
Canada’s main stock index slipped on Friday, weighed down by financial stocks and the energy sector, as the specter of a trade war loomed ahead of a Group of Seven summit in Quebec.
The S&P/TSX Composite Index slipped 29.53 points to approach Friday noon at 16,163.25
The Canadian dollar recovered 0.02 cents to 77.1 centsU.S.
Shares of Royal Bank of Canada, down six cents to $99.34, and Toronto-Dominion Bank, down 30 cents to $75.32, dragged on the financials. Bank of Canada Governor Stephen Poloz said on Thursday that trade uncertainty feels more risky than it did in April.
The largest percentage gainers on the TSX were Dollarama, which jumped $4.85, or 3.3%, to $150.88, after BMO upgraded the stock.
Biggest decliners on the TSX were cannabis firms Canopy Growth Co, which fell $1.42, or 3.6%, to $37.82, and Aurora Cannabis, which tripped 52 cents, or 5.4%, to $9.12, despite the Senate voting to legalize recreational marijuana on Thursday.
U.S. President Donald Trump lashed out at Canada and the European Union and said he plans to leave a meeting with leaders of the G7 nations early as fears of a trade war ratcheted higher.
In the economic docket, Statistics Canada reported employment was off 7,500 jobs in May, and the unemployment rate was 5.8% for the fourth consecutive month.
Meanwhile, Canada Mortgage and Housing Corporation reported that the trend in housing starts was 216,362 units in May, down from 225,481 units in April.
Other data showed Canada’s first quarter capacity utilization rose to a 12-year high
The TSX Venture gave back 2.4 points to 773.17
Seven of the 12 TSX subgroups were lower, with energy trailing Thursday’s close by 0.9%, while health-care stumbled 0.8%, and materials fell 0.5%.
The five gainers were topped by consumer staples, acquiring 0.4%, while information technology and utilities each picked up 0.2%.
Stocks traded lower on Friday, with tensions between the U.S. and key trade partners rising as the G-7 summit kicked off.
The Dow Jones Industrials forged ahead 9.95 points to pause for lunch at 25,251.36, with Apple limiting gains.
The S&P 500 faded 0.92 points to 2,769.45, as telecommunications and technology lagged
The NASDAQ fell 11.61 points to 7,623.46, as Apple and chip stocks both dropped more than 1%.
On Friday, President Donald Trump is scheduled to appear at the meeting, along with other world leaders — including those who currently govern nations that Trump has inflicted tariffs upon. One aspect that’s put investors on edge is a fresh tweet by Trump, who accused France and Canada of levying “massive tariffs” and establishing “non-monetary barriers.”
This came after French President Emmanuel Macron told reporters that while the U.S. incumbent may not mind being isolated, the other leaders could sign a six-country agreement if need be.
Prices for the benchmark for the 10-year U.S.Treasury hesitated, raising yields to 2.93% from Thursday’s 2.92%. Treasury prices and yields move in opposite directions.
Oil prices skidded 26 cents at $65.69U.S. a barrel.
Gold prices fell 10 cents at $1,302.90U.S. an ounce.
This article provided by NewsEdge.