TSE down as U.S. markets edge higher, loonie up
TORONTO — Canada’s main stock index ended lower as energy stocks weighed, while U.S. stock markets edged higher a day after they were closed for the July 4 holiday.
The S&P/TSX capped energy index was slid a per cent to be the worst of the sectors on the TSX as prices for oil and gas both fell.
Overall, the S&P/TSX composite index closed down 38.11 points at 16266.61 as financials and materials stocks also slid.
Base metal stocks were up on the day despite a big slide in the September copper contract that ended down nine cents at $2.83 US a pound.
Copper has fallen steeply from the nearly $2.30 US a pound it spiked to in early June on labour concerns at the Escondida mine in Chile, as increasing trade concerns have tempered demand speculation.
In New York, the Dow Jones industrial average closed up 181.92 points at 24356.74. The S&P 500 index ended up 23.39 points at 2736.61 and the Nasdaq composite index was up 83.75 points at 7586.43.
Stocks rose despite looming tariffs coming from the U.S. and China today as underlying market sentiments remain strong, said Kash Pashootan, CEO and chief investment officer at First Avenue Investment Counsel Inc.
“Yes, there are elevated risks, there is greater volatility, but it’s impressive to see the underlying optimism in equities is still strong when you see these types of rallies shortly after there’s bad news announcements like tariffs.”
The Canadian dollar averaged 76.17 cents US, up 0.08 of a US cent.
The August crude contract closed down $1.20 at $72.94 US per barrel and the August natural gas contract ended down three cents at $2.84 US per mmBTU.
Pashootan said elevated oil prices are a potential concern for long-term consumer spending that makes up 70 per cent of economic growth.
“One of the key takeaways from an investment perspective is these higher oil prices have led to considerably higher prices at the pump, which are taking a larger piece of the consumer’s wallet, and certainly affecting consumer confidence.”
The August gold contract closed up $5.30 at $1,258.80 US an ounce.
Centerra Gold slid 0.69 cents or 9.16 per cent to $6.84 after announcing that operations at its Mount Milligan mine in B.C. could be affected if it doesn’t secure new sources of water for processing. The company said it has applied to B.C. regulators take water from wells, creeks and a lake.
Canopy Growth Corp. closed up $1.05 or 2.72 per cent at $39.70 after the launch of a Latin American subsidiary and its acquisition of Colombian medical marijuana company Spectrum Cannabis Colombia for about $45.7 million in shares.