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TSX pares gains after BoC warns of trade war fallout

Published 2019-09-04, 10:27 a/m
© Reuters.  TSX pares gains after BoC warns of trade war fallout

Sept 4 (Reuters) - Canada's main stock index gave up some gains on Wednesday after the Bank of Canada flagged risks to the global economy from the U.S.-China trade battle, but left interest rates unchanged as expected.

* At 10:16 a.m. ET (14:16 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 81.45 points, or 0.5%, at 16,480.68.

* The Bank of Canada maintained its key overnight interest rate at 1.75%, but said the negative effects of the trade war were "weighing more heavily on global economic momentum than the Bank had projected in its July Monetary Policy Report". Separately, data showed Canada posted a bigger-than-expected trade deficit in July, a sign that the boost to the domestic economy from trade in the second quarter may not be repeated. Ten of the index's 11 major sectors were higher.

* The energy sector .SPTTEN climbed 1.6% as U.S. crude CLc1 prices rose 3.2% a barrel, while Brent crude LCOc1 added 2.7% on improved global risk apatite. O/R

* The financials sector .SPTTFS gained 0.5% and the industrials sector .GSPTTIN rose 1%.

* The materials sector .GSPTTMT , which includes precious and base metals miners and fertilizer companies, added 0.6%. GOL/ MET/L

* On the TSX, 174 issues were higher, while 56 issues declined for a 3.11-to-1 ratio favoring gainers, with 35.43 million shares traded.

* The largest percentage gainers on the TSX were First Quantum Minerals Ltd FM.TO , which jumped 7.1%, and Precision Drilling Corp PD.TO , which rose 6.8%.

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* Nexgen Energy Ltd NXE.TO fell 3%, the most on the TSX. The second biggest decliner was Restaurant Brands International Inc QSR.TO , down 2.7%.

* The most heavily traded shares by volume were Green Organic Dutchman Holdings Ltd TGOD.TO , Suncor Energy Inc SU.TO and Crescent Point Energy Corp CPG.TO .

* The TSX posted 21 new 52-week highs and no new low.

* Across all Canadian issues there were 66 new 52-week highs and eight new lows, with total volume of 60.75 million shares.

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