Stock indexes slide, loonie hits 6-week high

TORONTO — Mining stocks and financials weighed on Canada’s main stock index Tuesday as U.S. markets also fell into the red, while the Canadian dollar gained ground.

The S&P/TSX composite index was down 53.35 points to 15915.68 in a broadbased decline that included the materials, gold and base metals sectors.

In commodities, the February gold contract fell $12.80 US to $1,264.90 US an ounce and the March copper contract was down 14 cents to $2.95 US a pound.

It was also a negative day for financial institutions, as the Bank of Montreal wrapped up the big banks’ earnings season Tuesday with a drop in profits, which were hit by reinsurance claims related to hurricanes Irma, Maria and Harvey during the quarter ended Oct. 31. The Canadian lender’s net income slipped to $1.23 billion, down from $1.35 billion during the same period a year earlier.

Canada’s other big banks also saw losses, including Toronto-Dominion Bank, which was down 1.32 per cent, and Bank of Nova Scotia, which was down 0.59 per cent.

“The banks are all a little weak today, but if you look at the operating results, the banks have reported we have seen fairly strong results from the vast majority of the banks,” said Colum McKinley, vicepresident and portfolio manager of Canadian equities at CIBC Asset Management Inc.

The energy sector was the lone bright spot among major sectors on the TSX, as the price of oil recovered modestly after a sharp drop on Monday. The January crude contract advanced 15 cents to $57.62 US per barrel.

Elsewhere in commodities, the January natural gas contract retreated seven cents to $2.91 US per mmBTU.

South of the border, Wall Street fell into the red after a recovery for technology stocks lost ground. Telecom stocks, utilities and industrial companies had the market’s sharpest losses.

In New York, the Dow Jones industrial average tumbled 109.41 points to 24180.64. The S&P 500 index edged down 9.87 points to 2629.57 and the Nasdaq composite index gave back 13.16 points to 6762.21.

Tech stocks began stumbling last week as expectations ramped up for Washington to push through an overhaul of the tax system. Technology companies already pay some of the lowest effective tax rates of companies in the S&P 500, so they have less to gain from the proposal.

In currency markets, the Canadian dollar closed at an average trading value of 78.86 cents US, up 0.09 of a U.S. cent, ahead of today’s Bank of Canada interest rate announcement.

That’s the highest level for the loonie in six weeks. It closed at an average trading price of 78.95 cents US on Oct. 24.