Canada’s main stock index slipped on Thursday as falling gold prices led to losses in shares of precious metals miners, with new U.S-China tariffs weighing on the sentiment.
Gold prices were under pressure from a stronger dollar as the U.S. Federal Reserve reaffirmed intentions to raise interest rates and trade tariffs between the United States and China kicked in.
Eight of the index’s 11 major sectors were lower, led by the material group’s 1.1 per cent fall.
Detour Gold Corp fell 5.3 per cent, the most on the TSX, while the second biggest decliner was First Majestic Silver, down 3.8 per cent.
Also weighing on the TSX was the energy sector’s 0.6 percent drop due to lower crude oil prices.
At 9:47 a.m. ET (13:47 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 29.06 points, or 0.18 per cent, at 16,318.28.
Meanwhile, the benchmark S&P 500 edged higher as technology stocks rose, though gains were restricted by declines in commodity-related stocks and trade-sensitive sectors after new tariffs took effect in the U.S.-China trade war.
In their latest back-and-forth, the United States and China imposed fresh tariffs on $16-billion worth of each other’s goods, despite ongoing trade talks between the countries.
The trade-sensitive S&P industrials sector dipped 0.16 per cent, weighing on the Dow Jones Industrial Average. The technology index rose 0.64 per cent, bolstering the S&P 500 and the Nasdaq Composite.
The energy index fell 0.68 per cent and the materials index dropped 0.61 per cent as prices of crude oil and metals declined with the escalation in Sino-U.S. trade dispute and the dollar strengthened on expectations of higher U.S. interest rates soon.
Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole central bankers’ symposium on Friday will be keenly watched for clues on future rate hikes.
“The main thing on our radar right now is the two-day Jackson Hole symposium and investors are waiting on Powell’s speech to figure out what kind of hike path the Fed is on,” said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.
“Political headlines in the past few days have had very little impact on people’s thoughts around the markets.”
Financial stocks were down 0.25 per cent, as the two-day Jackson Hole meet kicks off on Thursday.
At 9:57 a.m. EDT, the Dow Jones Industrial Average was down 11.11 points, or 0.04 per cent, at 25,722.49, the S&P 500 was up 2.75 points, or 0.10 per cent, at 2,864.57 and the Nasdaq Composite was up 28.18 points, or 0.36 per cent, at 7,917.27.
Data showed the number of Americans filing for unemployment benefits fell last week, a sign the labor market was holding firm despite trade tensions that have spawned restrictions on global commerce.
But U.S. meat producers have said increase in Chinese tariffs on beef and pork have led to domestic oversupply and forced price cuts for competing meat such as chicken.
Shares of Hormel Foods fell 2.8 per cent and Sanderson Farms dropped 1.3 per cent after the packaged food makers posted disappointing results, laying the blame partly on China tariffs.
Victoria’s Secret-owner L Brands dropped 9 per cent, the most on the S&P, after cutting its full-year profit expectations.
Synopsys gained 6.7 per cent, the most on the S&P, after the electronic products and software maker beat quarterly estimates for revenue and profit.
Declining issues outnumbered advancers for a 1.60-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.02-to-1 ratio on the Nasdaq.
The S&P index recorded 14 new 52-week highs and one new low, while the Nasdaq recorded 85 new highs and 7 new lows.
Reuters