Canada's main stock index edged lower on Tuesday in choppy trade, weighed by high Treasury yields, while investors parsed fresh data that showed domestic inflation rose in April.
The TSX Composite Index was still negative 26.56 points to break for lunch Tuesday at 33,806.79.
Markets in Canada were closed Monday for Victoria Day.
The Canadian dollar slid 0.13 cents to 72.65 cents U.S.
The technology sub-index led gains, with Thomson Reuters charging up $7.16, or 6.3%, to $121.22. Constellation Software collected $229.60, or 8.8%, to $2,841.94 and Descartes Systems up $4.61, or 5%, to $97.77.
Geopolitical worries eased after U.S. President Donald Trump on Monday said there was now a "very good chance" of reaching a deal limiting Iran's nuclear program.
On the economic calendar, Statistics Canada reports, the total value of building permits issued in Canada increased $1.3 billion (+10.3%) in March to $13.5 billion, while the Consumer Price Index increased 2.8% year over year in April, up from an increase of 2.4% in March. On a seasonally adjusted monthly basis, the CPI rose 0.3% in April.
Lastly, April’s new housing price index decreased 0.4%, compared to a drop in March of 0.2%.
ON BAYSTREET
The TSX Venture Exchange evaporated 30.32 points, or 3.1%, midday Tuesday to 958,51.
Eight of the 12 TSX subgroups gained ground, with information technology ahead 2.2%, while telecoms grabbed 1.5%, and energy rumbled 1.4%.
The four laggards were weighed most by gold, sliding 3.7%, materials, down 3.6%, and consumer discretionary stocks, off 0.5%.
ON WALLSTREET
Stocks fell Tuesday as a jump in bond yields threatened the bull market by weighing on the U.S. consumer and undermining the growth of technology stocks.
Traders also kept an eye on the oil market following President Donald Trump’s cancellation of planned attacks on Iran, as well as recent pressure on chip stocks.
The Dow Jones Industrials jettisoned 279.26 points to reach noon EDT Tuesday at 49,406.28.
The S&P 500 dumped 58.09 points to 7,344.96.
The NASDAQ sank 321.86 points, or 1.2%, to 25,768.87.
Nvidia, which will report its fiscal first-quarter earnings after the bell on Wednesday, headed for its third-straight decline, down 0.5%.
Qualcomm slid more than 3%, and Broadcom pulled back 1.8%.
Oppenheimer remains bullish on Costco Wholesale heading into the warehouse club’s earnings later this month. One analyst reiterated his top pick ranking on the stock and raised his price target to $1,160 from $1,100, which implies 8% upside from Monday’s close.
Crude prices were down Tuesday after President Donald Trump announced late Monday that he was calling off a plan to attack Iran after the heads of three regional powers in the Middle East asked him to “hold off.”
Prices for the 10-year Treasury eked upward, lowering yields to 4.68% from Monday’s 4.69%. Treasury prices and yields move in opposite directions.
Oil prices eked up three cents to $108.69 U.S. a barrel.
Gold prices slid $47,70 to $4,5110.30 U.S. an ounce.
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