/arc-anglerfish-tgam-prod-tgam.s3.amazonaws.com/public/KDNZJF65VJEYXHPK5N3BBTESSI.jpg)
Canada’s main stock index fell on Tuesday, hurt by a slide in energy and financial sectors amid heightened trade tensions between the United States and China.
At 11:27 a.m. ET, the Toronto Stock Exchange’s S&P/TSX Composite index was down 255.14 points, or 1.59 per cent, at 16,155.98.
Ten of the index’s 11 major sectors were lower, with energy and financials falling the most.
The energy sector tumbled 3.4 per cent, while financials slipped 2.3 per cent.
The trade war between the world’s top economies remained close to boiling point in the past two sessions and have roiled global financial stocks after China let the onshore yuan break through the key 7 per dollar level for the first time since the global financial crisis.
The tensions did, however, ease globally when China’s central bank fixed the yuan at a slightly stronger rate.
The materials sector added 0.8 per cent and was the sole gainer among major sectors as gold prices held near a six-year high.
U.S. stocks rose on Tuesday, helped by technology shares, as China stepped in to stabilize the yuan, a day after Wall Street’s main indexes suffered their sharpest one-day percentage declines of the year.
The benchmark S&P 500 and Nasdaq lost at least 3 per cent each on Monday, after China let the yuan slide, prompting the U.S. Treasury Department to label Beijing as a currency manipulator.
However, China’s move to fix the yuan at a slightly stronger rate overnight allayed fears of a further escalation in trade war that has been roiling markets since last week when President Donald Trump threatened a new round of tariffs on Chinese imports.
“The fact that China stabilized its currency gives investors some hope that this won’t accelerate into a bigger problem,” said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
“Any positive response by either side that suggests some willingness to negotiate is really going to be taken well by investors.”
Trade tensions ebbed also after White House economic adviser Larry Kudlow said Trump was planning to host a Chinese delegation for further talks in September.
The Dow Jones Industrial Average was up 88.54 points, or 0.34 per cent, at 25,806.28, the S&P 500 was up 13.31 points, or 0.47 per cent, at 2,858.05. The Nasdaq Composite was up 54.18 points, or 0.70 per cent, at 7,780.22.
The latest bout of losses has pulled the S&P 500 5.6 per cent away from its all-time high hit last month.
The technology sector, which includes companies that have a big exposure to China and were at the heart of Monday’s selloff, rose 1.05 per cent, the most among major S&P sectors.
Apple Inc. gained 1 per cent after three days of heavy losses, while Philadelphia Semiconductor index climbed 0.91 per cent.
Among other stocks, videogame publisher Take-Two Interactive Software Inc. jumped 8.5 per cent after raising its full-year revenue forecast.
The materials sector dropped 0.78 per cent, weighed by a more than 10 per cent drop in scent and flavor maker International Flavors & Fragrances and fertilizer company Mosaic Co after the two companies cut full-year earnings forecasts.
Payments processor Mastercard Inc. gained 2.1 per cent after it said it would buy a majority of the corporate services businesses of Scandinavian payments group Nets for about $3.19 billion.
Walt Disney Co. was up 0.7 per cent ahead of its results after market close.
Reuters
from Business - Latest - Google News https://ift.tt/2MLYKAz
via IFTTT
August 06, 2019 at 04:19PM
Tidak ada komentar:
Posting Komentar