Equities in Canada’s largest market tumbled Tuesday as energy shares dived with oil prices, while Cenovus Energy lost nearly 10% after the company announced plans to replace its chief executive.
The S&P/TSX Composite Index fell 58.63 points to open Tuesday at 15,207.41
The Canadian dollar dropped 0.25 cents to 75.37 cents U.S.
Cenovus also says it would sell $4 billion to $5 billion in non-core assets to reduce debt after it paid about $17 billion last month to buy ConocoPhillips’ western Canadian oil sands assets.
Cenovus shares gave back $1.01, or 9.8%, to $9.27.
Bombardier has signed a $1.14-billion contract to supply passenger trains to the two new operators of Britain’s South Western rail franchise.
Bombardier moved up six cents, or 2.3%, to $2.65.
CIBC raised the target price on Air Canada to $20.50 from $19.50. The Maple Leaf airline saw its shares gain five cents to $17.31.
Raymond James cut the price target on Aimia Inc. to $6.00 from $7.00. Aimia shares gained seven cents, or 4.7%, to $1.56.
National Bank of Canada started coverage on Kinder Morgan Canada with a sector perform rating, and a $17 target price. Kinder shares nicked up four cents to $15.64.
On the economic slate, Statistics Canada reported that wholesale trade increased 1.0% to $61.0 billion in April, a seventh consecutive monthly advance.
The agency says gains were recorded in three of seven sub-sectors, accounting for 41% of total wholesale sales, and were led by the machinery, equipment and supplies sub-sector.
Moreover, Federal Finance Minister Bill Morneau said on Monday he had discussed with his provincial counterparts whether more a
The TSX Venture Exchange eased back 1.57 points to 775.03
Eight of the 12 TSX subgroups were positive to begin the session, as information technology eked up 0.4%, consumer discretionary nosed up 0.2%, and gold edged up 0.1%.
The four laggards were weighed the most by energy, plummeting 2.4%, materials, down 0.1%, and financials, fading 0.02%.
U.S. equities traded lower Tuesday, pulling back from record highs, as oil prices fell to their lowest levels since November.
The Dow Jones Industrials dropped 18.58 points from Monday’s record high to 21,510.41, with Chevron contributing the most losses.
The S&P 500 slid 6.28 points – also from a Monday peak — to 2,447.18, as the energy sector dropped nearly 2% to lead decliners.
The NASDAQ skidded 9.31 points to 6,229.70.
Investors also kept an eye on Washington as they awaited more details regarding potential tax reform.
House Speaker Paul Ryan is scheduled to speak later in the day at a conference held by the National Association of Manufacturers, where he is expected to push for permanent changes and comprehensive reform for individuals and businesses.
Prices for the benchmark 10-year Treasury note gained ground, lowering yields to 2.17% from Monday’s 2.19%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.27 to $42.93 U.S. a barrel
Gold prices faltered $3.40 to $1,243.30 U.S. an ounce.