Canadian Stocks Remain Firmly Negative After Early Slump
(RTTNews) - After coming under pressure early in the session, Canadian stocks remained firmly in negative territory throughout the trading day on Tuesday.
The S&P/TSX Composite Index ended the session off its worst levels of the day but still fell 89.29 points or 0.5 percent at 16,892.18.
Renewed trade concerns weighed on the markets after President Donald Trump suggested he might prefer to wait until after the 2020 elections to strike a trade deal with China.
Trump told reporters at a NATO summit in London there is no deadline to reach a trade deal, adding, "In some ways, I think it's better to wait until after the election."
"But they want to make a deal now, and we'll see whether or not the deal's going to be right; it's got to be right," Trump said.
Trump claimed a potential trade deal is only dependent on whether he wants to sign it, because the U.S. is "doing very well" and China is "having by far the worst year that they have had in 57 years."
The comments from the president added to rising trade concerns after his administration threatened to impose duties of up to 100 percent on $2.4 billion in French imports, including champagne and handbags.
Energy stocks turned in some of the market's worst performances on the day, resulting in a 1.8 percent slump by the S&P/TSX Capped Energy Index.
The weakness in the energy sector came even though the price of crude oil for January delivery recovered from early weakness to close up $0.14 at $56.10 a barrel.
Industrial, financial, and consumer discretionary stocks also saw considerable weakness, while healthcare stocks showed a notable move to the upside.
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