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CANADA STOCKS-TSX slips as Trump talk weighs on auto stocks

Published 2017-01-16, 10:56 a/m
© Reuters.  CANADA STOCKS-TSX slips as Trump talk weighs on auto stocks
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(Adds details on specific stocks, updates prices)

* TSX down 36.94 points, or 0.24 percent, at 15,460.34

* All of the TSX's 10 main groups move lower

TORONTO, Jan 16 (Reuters) - Canada's main stock index pulled back in morning trade on Monday, with several auto parts makers losing ground as U.S. President-elect Donald Trump upped pressure on carmakers to build locally.

The most influential weights on the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE included Magna International Inc MG.TO , which fell 3.3 percent at C$56.86, and Linamar Corp LNR.TO , which lost 3.7 percent to C$55.51. Both stocks were at more than one-month lows.

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, would escape unharmed.

At 10:34 a.m. ET (1534 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 36.94 points, or 0.24 percent, to 15,460.34. All 10 main sectors fell.

Stella-Jones Inc SJ.TO slumped 8.5 percent to C$39.07 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. miners helped offset the index's losses as gold hit its highest price in more than seven weeks on buying fueled by political uncertainty after Trump's comments on NATO and China. GOL/

The most influential gainers included Goldcorp Inc G.TO up 1.1 percent to C$19.39, and Barrick Gold Corp, which rose 0.8 percent to C$22.35.

Pan Am Silver Corp PAA.TO gained 3.5 percent to C$23.75. Pan Am said last week it had cut costs more than expected and expected strong production growth and further cost cuts in the next three years. materials group, which includes precious and base metals miners and fertilizer companies, slipped 0.1 percent.

The energy group retreated 0.7 percent, with most of the sector's constituents lower. Investors are wary that large oil producers will reduce production as promised and expect U.S. production to increase again this year. O/R

The heavyweight financials group slipped 0.4 percent.

Sales of Canadian homes rose 2.2 percent in December from November, regaining some of the momentum after tighter mortgage rules sideswiped sales in November, a report from the Canadian Real Estate Association showed.

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