Canada's main stock index edged lower on Thursday, mirroring a downbeat mood across global markets as investors questioned whether the U.S. Treasury's intervention would be enough to calm the bond market.
The TSX declined 104.72 points to move into Thursday afternoon at 36,297.07
The Canadian dollar gained 0.13 cents to 72.54 cents U.S.
On the economic calendar, Statistics Canada says its raw materials price index decreased 2.2% month over month in June and increased 18.1% year over year, while its industrial products price index increased 0.6% month over month and gained 12.4% year over year.
Elsewhere, the new housing price index decreased 0.1%, identical to a 0.1% drop in June.
On the trade front, Federal Trade Minister Dominic LeBlanc was set to meet U.S. Trade Representative Jamieson Greer at 1215 EDT.
ON BAYSTREET
The TSX Venture Exchange pointed 1.08 points to 972.56.
Seven of the 12 TSX subgroups were lower, weighed most by financials, sliding 1.9%, while telecoms and health-care, each of 1.4%.
The five gainers were led by gold and energy, both up 1.6%, while utilities moved forward 0.4%.
ON WALLSTREET
U.S. stocks fell on Thursday as Treasury yields reversed course from the decline seen in the prior trading day after the Treasury Department’s debt buyback announcement.
The Dow Jones Industrials flopped 475.86 points to 52,987.19.
The S&P 500 slipped 29.15 points to 7,678.83.
The NASDAQ Composite dropped 162.87 points to 26,111.79.
A pullback in Walmart shares hit the broader market as well. The retail giant dropped 9% after its U.S. comparable sales missed analyst expectations, as did its adjusted earnings forecast for both the third quarter and full year.
Also weighing on equities, oil prices rose again amid increasing tensions between Iran and the U.S. President Donald Trump said in a Truth Social post late Wednesday that the U.S. would begin “most crushing economic operation ever taken against any country” against Iran. “This will be Economic Warfare and Isolation on an unprecedented scale,” he wrote.
Bond yields advanced on Thursday, climbing back from Wednesday’s slide following the Treasury Department saying it will at least double repurchases of 10-, 20- and 30-year debt in the next few months.
Treasury Secretary Scott Bessent told the media Thursday that the debt buyback operation could actually be larger than the $4 billion that was announced.
Prices for the 10-year Treasury popped, lowering yields to 4.70% from Wednesday’s 4.65%. Treasury prices and yields move in opposite directions.
Oil prices acquired $2.56 to $88.39 U.S. a barrel.
Gold prices recovered $30.30 to $4,575.30 U.S. an ounce.
