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CANADA STOCKS-TSX dips, pressured by financials and auto stocks

Published 2017-01-16, 04:50 p/m
© Reuters.  CANADA STOCKS-TSX dips, pressured by financials and auto stocks
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* TSX closes down 17.99 points, or 0.12 percent, at 15,479.29

* Six of the TSX's 10 main groups end lower

By Fergal Smith

TORONTO, Jan 16 (Reuters) - Canada's main stock index fell on Monday, with financials down and several auto parts makers losing ground as U.S. President-elect Donald Trump upped pressure on carmakers to build in the United States.

The most influential weights on the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE included Magna International Inc MG.TO , which fell 3.1 percent at C$56.98, and Linamar Corp LNR.TO , which lost 3.5 percent to C$55.65.

Trump warned German carmaker BMW he would impose a border tax of 35 percent on vehicles they build in Mexico and export to the U.S. market, according to excerpts of a German newspaper interview released on Sunday. most of Trump's attention has been focused on the use of Mexican plants, it is not clear that Ontario's auto industry, closely intertwined with that of Detroit, will escape unharmed.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 17.99 points, or 0.12 percent, at 15,479.29. Six of the index's 10 main groups ended lower.

The market is pulling back ahead of Trump's inauguration as president on Friday, said Harrison Newlands, research associate at Macnicol & Associates.

The index has rallied more than 5 percent since Trump's election victory on Nov. 8, helped by optimism he will cut corporate taxes, spend on infrastructure and deregulate banks.

Gold XAU= climbed to its highest in more than seven weeks on Monday on buying fueled by political uncertainty after comments by Trump on NATO and China. GOL/

Recent large swings in gold point to a pickup in stock market volatility amid global political and economic uncertainty, said Newlands, who expects bond yields to resume their recent push higher after the inauguration.

He sees a positive outlook for the TSX due to its large concentration of gold stocks and as Canadian companies benefit from a stronger U.S. dollar and robust U.S. consumption.

Barrick Gold Corp ABX.TO rose 1.5 percent to C$22.50 and Pan Am Silver Corp PAA.TO gained 2.2 percent to C$23.44.

But the materials group, which includes precious and base metals miners and fertilizer companies, slipped 0.1 percent, while the heavyweight financials group declined 0.3 percent.

Stella-Jones Inc SJ.TO slumped 7.5 percent to C$39.50 after several banks cuts their price targets and recommendations on the lumber company after it said lower demand for railway ties would hurt its quarterly profit and revenue. energy group retreated 0.2 percent even as oil gained. U.S. crude CLc1 prices rose 0.5 percent to $52.64 a barrel. O/R

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