Toronto stock mar­ket con­tin­ues slide

Cape Breton Post - - CLASSIFIEDS / BUSINESS -

Canada’s largest stock mar­ket con­tin­ued its sec­ond day of de­clines Thurs­day while ma­jor Amer­i­can in­dexes were mixed, as in­vestors seek more clar­ity on sev­eral de­vel­op­ments in the United States in­clud­ing the eco­nomic poli­cies of Pres­i­dent Don­ald Trump.

The Toronto Stock Ex­change’s S&P/TSX com­pos­ite in­dex gave up 49.02 points at 15,781.20 af­ter tem­po­rar­ily re­bound­ing from Wed­nes­day’s losses in early trad­ing.

In New York, the Dow Jones in­dus­trial av­er­age ad­vanced 34.72 points at 20,810.32, hit­ting an all-time high. The S&P 500 eked out 0.99 of point to 2,363.81 and the Nas­daq com­pos­ite fell 25.12 points at 5,835.51 points.

In Wash­ing­ton, an un­named se­nior White House of­fi­cial told The As­so­ci­ated Press that sev­eral U.S. man­u­fac­tur­ing CEOs pushed for a con­tro­ver­sial tax on im­ports dur­ing their meet­ing with Pres­i­dent Trump Thurs­day. The tax, known as the “bor­der-ad­justed tax,’’ would also ex­clude ex­ports from tax­a­tion.

While some Repub­li­cans are push­ing it as a cor­po­rate tax re­form, the tax has di­vided the busi­ness com­mu­nity. The bor­der-ad­justed tax is strongly op­posed by large U.S. re­tail­ers such as Wal-Mart and Tar­get, who ar­gue that they could pay more in taxes than they earn in prof­its.

“The mar­kets are walk­ing on eggshells a lit­tle bit,’’ said Al­lan Small, a se­nior in­vest­ment ad­viser at Hol­lis Wealth.

“The slight­est neg­a­tive news out of Wash­ing­ton could sell the mar­ket off to some de­gree. ... And I think ev­ery­body is wait­ing for that to hap­pen.’’

Also weigh­ing on in­vestors’ minds is the pos­si­bil­ity that the U.S. cen­tral bank may raise its key in­ter­est rate as soon as next month _ as sug­gested by min­utes re­leased yes­ter­day by the Fed­eral Re­serve from its Jan­uary meet­ing. Most econ­o­mists had in­di­cated they did not fore­see a rate hike un­til June.

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