Equity markets in Canada’s largest centre lost ground as Friday opened for business, even as investors drew comfort from signs that U.S.-Iran negotiations could resume, but the optimism was ?offset by declines in the energy ?sector.
The TSX Composite Index tumbled 94.58 points to begin trading at 33,818.35
The Canadian dollar restrengthened 0.13 cents at 73.01 cents U.S.
The TSX was on track for declines this week, its first in four, with oil prices over $100 a barrel as little progress on the conflict front dampened investor appetite. The main index has jettisoned 528 points, or 1.5%, since last Friday.
Israel and Lebanon extended their ceasefire for three weeks, while U.S. President Donald Trump said he was prepared to wait for "the best deal" to end his war with Iran.
In the economic world, Statistics Canada says retail sales increased 0.7% to $72.1 billion in February. Sales were up in seven of nine subsectors, led by increases at motor vehicle and parts dealers.
ON BAYSTREET
The TSX Venture Exchange docked 9.21 points to 1,011.02, for a loss on the week so far of 43 points, or 4.1%.
All but three of the 12 TSX subgroups kicked off the session in the red, with energy stocks trailing 1%, while information technology off 0.9%, and telecoms reversing 0.7%.
The three gainers proved to be health-care, haler 1.2%, gold, brighter 0.8%, and utilities, nicking ahead 0.2%.
ON WALLSTREET
The S&P 500 rose Friday after investors were given a hopeful sign that peace talks between the U.S. and Iran would soon take place in Pakistan.
The Dow Jones Industrial Average skidded 162.15 points to 49,141.63.
The much broader index hiked 16.95 points to 7,125.50.
The NASDAQ revived 174.32 points to 24,612.87.
The Middle East conflict has evolved into a naval standoff over the Strait of Hormuz as the U.S. and Iran have seized commercial ships. U.S. President Trump said in a Truth Social post on Thursday that he had ordered the U.S. Navy to “shoot and kill any boat” that is laying mines in the strait.
Given Thursday’s reversal from all-time highs for the S&P 500 and NASDAQ, headlines coming from the Middle East still can sway the market, even as traders attempt to look past the conflict and focus on corporate earnings reports.
The move higher in S&P 500 on Friday was supported by Intel shares, which soared 24%. The chipmaker posted first-quarter earnings that beat Wall Street’s expectations and shared an upbeat forecast for its current quarter.
That adds to the rally semiconductor stocks have seen this week.
For the three major averages, however, the week is shaping up to be mixed. The S&P 500 is on track to end the period flat, while the Dow is tracking for a 0.6% decline. The NASDAQ has risen 0.6% this week.
Prices for the 10-year Treasury hiked, lowering yields to 4.31% from Thursday’s 4.32%. Treasury prices and yields move in opposite directions.
Oil prices lost a dollar to $94.85 U.S. a barrel.
Gold prices restored $30.40 to $4,754.40 U.S. an ounce.
