Canada’s main stock index was little changed on Friday as gains in financial companies and Rogers Communications offset declines in energy stocks and lower-than-expected domestic inflation data.
At 11:25 a.m. ET, the Toronto Stock Exchange’s S&P/TSX Composite Index was up 7.26 points, or 0.04 per cent, to 15,461.28.
Canada’s annual inflation rate rose to 2.3 per cent in February, exceeding the central bank’s 2.0-per-cent target for the second straight month but was slightly below analyst expectations of a 2.4-per-cent rise.
Canadian retail sales grew by 0.4 per cent in February, higher than a 0.3-per-cent gain expected by Reuters’ poll of analysts.
“The markets are a little bit disappointed because the numbers are softer than anticipated,” said Derek Holt, head of capital markets economics at Scotiabank. “But to me it still keeps May in play for the Bank of Canada. It doesn’t change the story in terms of the risks in my view.”
Shares of telecommunications company Rogers Communications jumped 5.3 percent and was the biggest percentage gainer on the TSX after at least two brokerages raised their price target on the stock.
The energy sector, which accounts for close to one-fifth of the index’s weight, was down 1 per cent tracking a dip in prices of oil, one of Canada’s major exports.
Cenovus Energy Inc. fell 3.4 per cent, Enbridge Inc. was down 1.1 per cent, and Canadian Natural Resources Ltd. lost 1.9 per cent.
Oil prices fell after U.S. President Donald Trump criticized OPEC and said oil prices were artificially high.
The materials sector, which includes precious and base metals miners and fertilizer companies, declined 0.4 per cent as losses in gold producers weighed.
World stocks dipped on Friday amid weakness in the energy sector and as worries about a global slowdown in smartphone demand dented the technology sector, while oil prices fell after U.S. President Donald Trump said prices were artificially high.
While the MSCI index of global stock markets was down 0.91 per cent on the day, it was still poised for its second week in the black after a strong start to the corporate earnings season.
A robust earnings season could offset fears of slowing global growth and help stock markets recover from a turbulent first quarter which saw greater volatility, a trade spat between the United States and China, and increased geopolitical tensions in the Middle East over Syria.
“While fundamentals remain robust, geopolitics and trade war fears, concerns over slowing global growth, and idiosyncratic issues in the tech sector have all weighed,” Deutsche Bank strategists wrote in note to clients, noting that a full-blown trade war between the U.S. and China was a major risk.
“In equities we see the recent correction as overdone, and the first quarter earnings season could act as the needed circuit breaker.”
Wall Street equities slid on weakness in energy stocks, dented by the falling oil prices, and a second session of limp tech stocks following a slide by Apple Inc and its suppliers on Thursday.
The Dow Jones Industrial Average fell 187.96 points, or 0.76 per cent, to 24,476.93, the S&P 500 lost 19.45 points, or 0.72 per cent, to 2,673.68 and the Nasdaq Composite dropped 72.64 points, or 1 per cent, to 7,165.42.
Oil prices tanked after Mr. Trump said via Twitter that prices were “artificially very high” and “will not be accepted.”
U.S. crude fell 0.42 per cent to $68.00 per barrel and Brent was at $73.35, down 0.58 per cent on the day.
However, they were still set for a second consecutive week of gains, buoyed by tightening supplies and continued support from OPEC and its allies on supply cuts.
The recent surge in oil prices to their highest for more than three years supported bond yields across the euro zone. Higher oil prices tend to push up inflation, which strengthens the case for tighter monetary policy and higher rates.
Asian shares slipped as a warning from the world’s largest contract chipmaker knocked the tech sector.
MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.45 per cent lower, while Japan’s Nikkei lost 0.13 per cent. Emerging market stocks lost 1.52 per cent.
Shares in Europe fell 0.14 per cent but were on track for a fourth week of gains.
Dovish remarks overnight from Bank of England Governor Mark Carney weakened sterling and helped the FTSE 100 index advance. It was last up 0.35 per cent.
Sterling continued to fall against the dollar, hitting its lowest against the greenback since April 6.
Expectations of a British interest rate increase in May have shrunk to 40 per cent from 70 percent earlier this week.
The dollar index, measured against a basket of peer currencies, rose 0.41 per cent, with the euro down 0.54 per cent to $1.2274.
Spot gold dropped 0.5 per cent to $1,338.84 an ounce.
Reuters