Energy Leads Selloff
Markets in Canada’s largest market edged lower on Thursday, led by energy stocks, which lost ground due to a drop in commodity prices.
The S&P/TSX Composite Index descended 30.86 points to greet noon hour at 16,273.86
The Canadian dollar inched up 0.09 cents at 76.18 cents U.S.
Gold miners Yamana Gold’s 2.5% fall – which amounted to 10.5 cents to $4.065 and First Quantum Minerals’ 10-cent loss to $18.31, weighed the most on the materials sector.
Airbus Chief Executive Tom Enders said on Wednesday he expects to see the first results of the company’s new majority stake in Bombardier’s CSeries jetliner program within weeks. Bombardier shares were trading higher by 11.5 cents, or 2.3%, higher to $5.125
Among the biggest percentage gainers were Mullen Group, which jumped 28 cents, or 1.8%, to $15.56, and Brookfield Infrastructure Partners, which rose $1.25, or 2.4% to $53.63, gaining for the second day after agreeing to buy Enbridge’s Canadian natural gas gathering and processing business. Enbridge edged up three cents to $46.87
Centerra Gold fell 60 cents, or 8%, to $6.93, and was the biggest loser on the TSX after the gold miner said it was seeking a permit to procure more short- and long-term water sources through to 2020 for its Mount Milligan Mine.
The second biggest decliner was Pason Systems, down 34 cents, or 1.6%, to $20.91
The TSX Venture Exchange stayed positive 1.56 points to 740.31
All but three of the 12 TSX subgroups lost ground midday, as energy dipped 0.6%, while consumer staples lost 0.5%, and industrials slipped 0.4%.
The three gainers were gold, up 0.7%, while health-care advanced 0.3%, and utilities, acquired 0.2%.
Stocks traded higher on Thursday as tech shares rose, but investors remained on edge as the U.S. prepared to slap tariffs on goods imported from China.
The Dow Jones Industrials perked 137.47 points to 24,312.29, with Intel outperforming.
The S&P 500 gained 14.57 points to 2,727.79, as tech climbed 1%.
The NASDAQ climbed 47.2 points to 7,549.87
Shares of Deere dropped 0.7%, and Cisco fell 0.2%. Boeing fell about 1% before trading 0.1% higher.
Tech shares jumped on Thursday, as Micron climbed 2.2%. The company confirmed China is blocking some chip sales, but noted the situation will only have a minor impact on its revenue. Shares of Facebook, Apple, Alphabet and Amazon also rose.
Media reports quoted the U.S. ambassador to Germany that President Donald Trump could hold off on implementing tariffs on European cars in exchange for concessions.
Shares of General Motors climbed 0.7% and Fiat Chrysler jumped 5.7%,
Investors have been grappling with increasing trade tensions for the past few months. On Friday, the U.S. is expected to activate levies on $34 billion in Chinese-made goods, with Beijing expected to respond with its own levies on U.S. goods.
The Federal Open Market Committee is expected to publish the minutes from its latest central banking meeting at 2 p.m. ET. At the last meeting in June, the Fed decided to increase its benchmark short-term interest rate by a quarter percentage point. In addition, the central bank signaled that two more rate hikes were expected to occur by year-end.
Investors will pore through the minutes looking for more clues about future monetary policy moves by the Fed.
The minutes will be released after data from ADP and Moody’s Analytics showed jobs grew by 177,000 in June, missing expectations. Jobs growth for May was revised higher, however.
ADP and Moody’s released their data ahead of the government’s monthly payrolls report, which is due Friday.
Prices for the benchmark for the 10-year U.S.Treasury gained ground, lowering yields to 2.83% from Tuesday’s 2.84%. Treasury prices and yields move in opposite directions.
Oil prices slid 61 cents to $73.53U.S. a barrel.
Gold prices climbed $5.10 to $1,258.60U.S. an ounce.
This article provided by NewsEdge.