Canada's main stock index opened lower on Tuesday, despite foreseeing an eighth straight quarter of gains, as higher commodity prices and easing geopolitical tensions lifted sentiment.
The TSX Composite Index dipped 23.57 to begin Tuesday trading at 34,800.25.
The Canadian dollar sank 0.07 cents to 70.30 cents U.S.
Markets in Canada will be shuttered in honour of Canada Day.
ON BAYSTREET
The TSX Venture Exchange edged higher 1.37 points to 892.46.
Seven of the 12 TSX subgroups began the session higher, led by energy, 0.9% more energetic, materials, better by 0.6%, and gold, up 0.2%.
The three laggards were information technology, down 0.5%, while utilities and real-estate each shed 0.3%.
Consumer discretionary and health-care stocks hadn’t quite moved off last night’s perch.
ON WALLSTREET
The Dow Jones Industrial Average slipped on Tuesday as oil prices traded above $70 per barrel amid uncertainty surrounding the conflict in the Middle East. However, Wall Street was still set to close out a strong first half and second quarter.
The 30-stock index faded 39.56 points to 52,147.67.
The S&P 500 inched higher 10.06 points to 7,450.49.
The NASDAQ improved 97.43 points to 25,917.58.
Financial stocks were under pressure after Oppenheimer downgraded key investment banks. Goldman Sachs and Morgan Stanley, both of which were moved to underperform from perform, fell more than 1% each.
Bank of America and Citigroup, which were downgraded to perform from outperform, also declined more than 1% apiece.
Tuesday marks the final day of the first half and the second quarter.
The Dow has climbed more than 8% in the first six months of the year, putting it on pace for its best first-half performance since 2021, when it jumped 12.7%.
The S&P 500 is also up more than 8% in the first half, while the NASDAQ has outperformed with a more than 11% advance.
The start of the year was characterized by volatility. While the major averages hit all-time highs, they did so in spite of wild swings in energy prices due to the Iran war as well as uncertainty around the sustainability of AI spending.
The second quarter of the year, however, has been especially strong for stocks, as fears around the AI trade eased and the war appeared to near a resolution.
The S&P 500 is ahead 14% and NASDAQ has risen about 20% for Q2, on pace for their biggest quarterly gain since the second quarter of 2020. The Dow has gained more than 12% in that time, headed for its strongest quarter since Q4 2022.
Prices for the 10-year Treasury fell back, raising yields to 4.40% from Monday’s 4.37%. Treasury prices and yields move in opposite directions.
Oil prices captured 17 cents to $70.92 U.S. a barrel.
Gold prices faltered $7.70 to $4,031.20 U.S. an ounce.
