Canada’s main stock index lagged on Tuesday, as materials and technology stocks declined on the back of weak services sector data from China, while investors braced for the Bank of Canada’s (BoC) interest rate decision this week.
The TSX remained in the negative column, 97.24 points to pause for lunch at 20,448.12.
The Canadian dollar slid 0.07 cents to 73.46 cents U.S.
Markets throughout North America were closed Monday for Labour Day.
Gold weighed heaviest on the index Tuesday, as Iamgold fell 15 cents, or 4.5%, to $3.17, while Novagold lost 27 cents, or 4.8%, to $5.42.
Energy stocks tried to salvage some strength from a downward situation Tuesday morning, as Athabasca Oil eked up eight cents, or 2.1%, to $3.98, while Birchcliff Energy gained 18 cents, or 2.1%, to $8.63.
The TSX Venture Exchange eked ahead 1.2 points to 592.72.
All but three of the 12 TSX subgroups wilted in the morning Tuesday, with gold duller in price 2.2%, materials fading 1.8%, and utilities off 1.3%.
The three gainers were energy, ahead 1%, health-care, up 0.5%, and consumer staples, better by 0.4%.
The S&P 500 slumped on Tuesday to kick off the first trading day of a holiday-shortened week, weighed by a jump in crude oil prices.
The Dow Jones Industrials trudged 50.02 points to reach noon EDT at 34,787.69.
The S&P 500 index declined 7.73 points to 4,508.07.
The NASDAQ index dipped 10.09 points to 14,021.73
The news lifted energy stocks, with the S&P 500 sector last up about 1.5%. Shares of Halliburton, Occidental Petroleum and EOG Resources added more than 2% each. The uptick pressured airline and cruise stocks, with American Airlines, United Airlines, Delta Air Lines and Carnival last down about 2% each.
Over the extended holiday weekend, Goldman Sachs cut its recession odds to 15% and said it anticipates the Federal Reserve skipping a rate hike at its policy meeting later this month.
While this could be seen as good news for the market, investors have to contend with September’s seasonal effects, which historically marks the weakest month for equities.
Prices for the 10-year Treasury sagged, raising yields to 4.25% from Friday’s 4.18%. Treasury prices and yields move in opposite directions.
Oil prices climbed $2.29 to $87.09 U.S. a barrel.
Gold prices flopped $15.30 to $1,951.80 U.S. an ounce.