Baystreet.ca - Canada's main stock index fell more than 1% on Tuesday, tracking major declines in materials and energy stocks, while investors awaited the Bank of Canada's monetary policy decision on Wednesday.
The TSX Composite Index jettisoned 277.25 points, or 1.2%, Tuesday noon to 23,068.93
The Canadian dollar skidded 0.25 cents at 73.85 cents U.S.
Markets on both sides of the border were Monday for Labour Day.
In corporate news, industrial valves manufacturer Velan signed a service agreement with GEH SMR Technologies Canada to supply products and services for a small modular reactor project with Ontario Power Generation. Shares in Velan took on a dime to $6.35.
The Bank of Canada is set to hold its policy meeting on Wednesday, in which it is widely expected to lower its policy rates by 25 basis points for the third time in a row.
On the economic slate, the Markit Canada Manufacturing PMI registered below the critical 50.0 no-change mark during August for a sixteenth successive month. However, by rising to 49.5, from 47.8 in July, the PMI signaled only a marginal deterioration in operating conditions that was the weakest since March.
ON BAYSTREET
The TSX Venture Exchange removed 12.13, or 2.1%, to 555.78.
All but two of the 12 subgroups were lower midday, with materials descending 4%, energy down 3.3%, and gold off 2.8%.
Only communications and health-care held out against the negative tide, communications growing gaining 0.6%, while health-care added 0.3%. .
ON WALLSTREET
Stocks declined Tuesday as technology names struggled and new economic data rekindled fears around the health of the economy.
The Dow Jones Industrial index woozed 441.4 points, or 1.1%, to stop for lunch at 41,122.07.
The S&P 500 slid 80.12 points, or 1,4%, to 5,568.28.
The NASDAQ stumbled 422.58 points, or 2.4%, to 17,291.04.
Stocks felt downward pressure as Nvidia (NASDAQ:NVDA), the high-flying artificial intelligence darling that has captured investor attention for more than a year, dropped more than 4%. It was one of several semiconductor stocks including Micron (NASDAQ:MU), KLA and Advanced Micro Devices (NASDAQ:AMD) seeing declines in the session.
Tuesday’s moves kick off the new trading month after the three major averages finished August with gains. U.S. markets were closed Monday due to the Labour Day holiday.
Investors will get their first major economic report of the month on Friday, when the U.S. government releases the August jobs report. Wall Street will also have to contend with seasonal headwinds, as September has been the worst month on average for the S&P 500 over the last 10 years.
Prices for the 10-year Treasury faltered, raising yields to 3.86% from Friday’s 3.91%. Treasury prices and yields move in opposite directions.
Oil prices skidded $2.90 to $70.65 U.S. a barrel.
Gold prices settled $9.20 to $2,518.40