Canada stocks-Financials, industrials drag TSX lower; Shopify hits one-month low
SHOP•Bombardier and Shopify weigh on their sectors
- Bombardier BBDb.TO fell 6.7% after U.S. President Donald Trump threatened to restrict the private jet maker's access to the U.S. market unless it began manufacturing in the country. The United States accounts for about half of the company's sales.
- The broader industrial sector .GSPTTIN fell 0.9%, while financial shares .SPTTFS were down 0.6%.
- Meanwhile, technology stocks .SPTTTK led sectoral losses, down more than 3%, after e-commerce platform Shopify SHOP.TO slid 7.6% to more than a one-month low, on track for its steepest intraday percentage decline since early May, if losses hold.
- Canada's retaliatory tariffs on American goods took effect on Tuesday after Prime Minister Mark Carney's government failed to reach a deal with Washington last month.
TSX falls as financials, industrials and tech weaken
Canada's main stock index slipped on Tuesday, pressured by losses in financial, industrial and tech stocks, with Shopify shares falling to a one-month low, while investors remained cautious ahead of key U.S. inflation data due later in the week.
The S&P/TSX Composite Index .GSPTSE fell 0.42% to 36,361.06 at 10:16 a.m. ET.
Markets watch inflation data and Middle East tensions
- Investors were wary ahead of U.S. inflation data due on Friday, as fears of prolonged energy disruptions continue to keep markets on edge.
- Oil prices hit their highest since late July after Iran-backed Houthis attacked Saudi energy facilities, further intensifying tensions in the Middle East.
- "This week's PPI and CPI are going to be major catalysts for what the Fed does at the end of the month. Until then, investors are on edge, watching what's happening with the Middle East as escalations start rising again," said Michael Dehal, senior portfolio manager, Dehal Investment Partners, at Raymond James.
