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Canadian markets react to fears that global growth is slowing

Goldmoney and other precious metal companies rallied amidst economic uncertainty

Toronto Stock Exchange building
Mining shares were strong movers on Friday

Canadian stocks recovered some of their losses on Friday afternoon but still finished a percentage point in the red as markets across North America reacted to concern that global growth is slowing.

The TSX was down 1% to 16,089.3, while the Venture fell 0.5% to close at 637.8. The CSE managed to buck the trend, finishing up 1.4% to close at 901.8.

Big percentage gainers on the TSX were Goldmoney Inc (TSE:XAU), up 13% to $2.41, after it launched a precious-metals redemption portal.

Shares of Wajax Corp (TSE:WJX), an industrial equipment supplier, fell 17% to $16.26.

On the commodities front, crude oil prices tumbled nearly 2% from midweek highs to close at US$58.84, while spot gold continued its good run this week, up 0.5% to US$1,313.20.

The Canadian dollar remained unchanged at US$0.75.

1:45pm TSX falls below six-month highs on weak inflation data

Canada’s main stock exchange was rocked on Friday afternoon as investors prepare for an economic slowdown.

Statistics Canada reported a small increase in inflation, to 1.5%, but far below the Bank of Canada’s 2% target.

The TSX tumbled to 16,065.8 by mid-Friday, while the Venture exchange was down 1.4% to 632.6.

Energy shares continued to be hard-hit by a lower oil price, with Wajax Corp (TSE:WJX), Yangarra Resources Ltd (TSE:YGR) and Cardinal Energy Ltd (TSE:CJ) the three biggest percentage decliners by midday.

The CSE was also down 0.2% on Friday afternoon to 887.3.

10:45am Canadian markets mixed as gold rises but oil slips

Canada’s main stock index opened slightly lower on Friday as news that retail sales had fallen for a third straight month in Canada.

The TSX opened at 16,244.6 before falling to 16,133.3 by mid-morning, a decrease of 0.7%. The TSX Venture was also trading lower than yesterday’s close, at 639.8 in early market activity.

The CSE continued to gain traction, opening Friday at 906.5 and rising steadily to 908.7.

Mining shares were strong movers on Friday, with Alexco Resource Corp (TSE:AXR) up 5.3% to $1.80 and Silvercorp Metals Inc (TSE:SVM) up 4% to $3.61.

Energy stocks weighed down the TSX in the morning, with Wajax Corp (TSE:WJX) the biggest mover to the downside at 15.7% to $16.49 and Cardinal Energy Ltd (TSE:CJ) declining 7.1% to $2.61.

On the commodities front, crude oil prices slipped from mid-week highs to US$59.02 but spot gold looked to continue its good run this week up 0.4% to US$1,312.40.

The Canadian dollar was unchanged at US$0.75.

Global markets

US markets receded at the open as disappointing manufacturing data out of Europe spooked investors. Germany’s manufacturing industry shrank for the third straight month, according to a report from IHS Markit. The index for the sector fell to 44.7, the lowest it has been since 2012.

In France, manufacturing and services declined to their lowest levels in three and two months, respectively, per CNBC. As a whole, Eurozone manufacturing dipped to its lowest point since April 2013.

This comes on the heels of the Federal Open Market Committee’s decision to leave interest rates unchanged through 2019 and warnings that economic growth had slowed.

The Dow Jones Industrial Average lost 1% to 25,685.3, the Nasdaq fell 1% to 7,755.1, and the S&P 500 dropped 0.9% to 2,827.4.

The small-cap Russell 2000 Index slipped 0.6% to 1,553.2.

European markets showed similar declines. The London FTSE declined 1,7% to 7,232.7, the French CAC was down 1.2% to 5,313.8 and the German DAX took a 0.6% hit to 11,478.9.

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