Canada’s main stock index edged lower as losses in the materials sector weighed on the market.
The S&P/TSX composite index was down 17.53 points at 16,329.81.
The Canadian dollar traded down at 76.63 cents US compared with an average of 76.83 cents US on Wednesday.
The October crude contract was up seven cents at US$67.93 per barrel and the September natural gas contract was down 0.2 of a cent at US$2.95 per mmBTU.
The December gold contract was down US$7.30 at US$1,196.00 an ounce and the September copper contract was down 1.75 cents at US$2.66 a pound.
South of the border, U.S. stocks dropped and the U.S. dollar rallied as investors weighed fresh tariffs against the pending outcome of the latest trade talks with China and Mexico.
The S&P 500 Index fell for a second day in thin volume as traders awaited the end of a U.S.-China meeting after the two countries slapped tit-for-tat tariffs worth billions of dollars on each other. Shares of Chinese tech giant Alibaba turned lower after rallying earlier on solid earnings. The dollar rose for the first time in six days, while the 10-year Treasury yield traded around 2.82 per cent ahead of scheduled comments by Federal Reserve chairman Jerome Powell Friday. The S&P 500 Index fell less than 0.2 per cent as of 11:22 a.m. ET. The Nasdaq Composite Index gained 0.5 per cent.
The euro fell as data showed factories taking a hit from higher raw-material costs and global trade tensions. The Mexican peso dropped against the greenback as investors waited to see if a deal would be reached on Nafta, while the rand declined following a tweet by President Donald Trump that fueled speculation of possible sanctions against South Africa.
Trade remains in the spotlight after the U.S. and China levied more duties, while Mexico appears close to an agreement on Nafta. And in the background., investors are left to wonder how the political drama in Washington may impact negotiations. All of this could get pushed aside at the end of the week as traders look for hints on the future of monetary policy during a gathering of central bankers in Jackson Hole, Wyoming.
Tariffs “certainly adds uncertainly and everybody knows the market doesn’t like uncertainty,” Chris Hyzy, chief investment officer for Bank of America Global Wealth & Investment Management, said by phone. “The market is okay with known unknowns, the market is not okay with unknown unknowns. This is a known unknown. Until two things occur, which is a significant uptick in protectionism leads to an overly strong dollar and leads to eventually a peak in growth, the market is comfortable with the known unknown.”
Elsewhere, the Russian ruble swung from a loss to a gain after the central bank said it’s suspending purchases of foreign exchange through the end of September. Commodities were under pressure in the face of the rising dollar, with gold also slumping on the outlook for higher American interest rates.
The Canadian Press and Bloomberg