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CANADA STOCKS-TSX at four-week low on trade worries

Published 2018-08-02, 10:41 a/m
© Reuters.  CANADA STOCKS-TSX at four-week low on trade worries
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Aug 2 (Reuters) - Canada's main stock index fell to a four-week low on Thursday, led by the financial sector, after U.S. President Donald Trump proposed 25 percent tariffs on $200 billion worth of Chinese imports, fanning worries of a trade war.

* At 9:48 a.m. ET (13:48 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 103.99 points, or 0.63 percent, at 16,272.78, its lowest level since July 6.

* U.S. Trade Representative Robert Lighthizer said Trump directed the increase from a previously proposed 10 percent duty because China has refused to meet U.S. demands and has imposed retaliatory tariffs on U.S. goods. Eight of the index's 11 major sectors were in the red.

* The financial sector .SPTTFS was the biggest loser, with a 0.9 percent fall. Royal Bank of Canada RY.TO and Toronto-Dominion Bank 's TD.TO 0.8 percent fall weighed the most on the index.

* The energy sector .SPTTEN dropped 1.4 percent as oil prices fell for a third straight day following a surprise increase in U.S. crude inventories.

* U.S. crude CLc1 prices were down 0.5 percent per barrel, while Brent crude LCOc1 lost 0.4 percent. O/R

* Biggest lags on the energy index were Suncor Energy SU.TO , which fell 1.8 percent, and Canadian Natural Resources CNQ.TO , which dropped 2.3 percent.

* The materials sector .GSPTTMT , which includes precious and base metals miners, as well as fertilizer companies, added 0.4 percent, boosted by fertilizer and farm supply dealer Nutrien Ltd NTR.TO .

* Nutrien rose 4.2 percent as higher prices for potash and nitrogen fertilizers helped deliver a better-than-expected quarterly profit. Gold futures GCc1 fell 0.2 percent to $1,216 per ounce, while copper prices CMCU3 declined 1.0 percent to $6,111.5 per tonne. GOL/ MET/L

* Shares of Bombardier Inc BBDb.TO rose 3.4 percent. The plane and train maker's pace of cash burn was well below expectations in the second quarter, putting it firmly on track to break even on cash flow this year. The largest percentage gainer on the TSX were Gildan Activewear GIL.TO , which jumped 18.8 percent after the apparel maker lifted its full-year sales and profit forecast. The second-biggest gainer on the index was Spin Master Corp TOY.TO , which rose 7.8 percent after results. Ivanhoe Mines Ltd IVN.TO fell 3.2 percent, the most on the TSX. The second-biggest decliner was Cott Corp BCB.TO , down 3.0 percent after posting second-quarter results. The most heavily traded shares by volume were those of Bombardier BBDb.TO , Trinidad Drilling TDG.TO and Quarterhill Inc QTRH.TO .

* On the TSX, 64 issues were higher, while 172 declined for a 2.69-to-1 ratio to the downside, with 20.62 million shares traded.

* The TSX posted two new 52-week highs and three new lows.

* Across all Canadian issues there were nine new 52-week highs and 17 new lows, with total volume of 32.52 million shares.

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