Canada's main stock index fails to match exuberance of U.S. markets

Ross Marowits, The Canadian Press
Published Friday, October 11, 2019 12:03AM EDT
Last Updated Friday, October 11, 2019 5:54PM EDT

TORONTO — Canada’s main stock index dipped as it failed to match the exuberance in the U.S. Friday despite a partial trade deal with China.

The S&P/TSX composite index lost half a per cent on the day compared with 1.2 to 1.4 per cent gains by the three New York stock markets.

Some of the U.S. excitement from a partial trade deal between the world’s two largest economies has been absorbed by a strong rise in the loonie in reaction to a healthy jobs report, along with a sizable dip in gold stocks that represent an important share of the Canadian stock market, said Patrick Blais, senior portfolio manager at Manulife Asset Management.

“Part of the underperformance is related to just our currency going up and therefore the equity markets not reacting as much because a rising currency is usually not a good thing for equities,” he said in an interview.

The Canadian dollar traded for an average of 75.77 cents US, the highest level in a month and more than a half cent above the average of 75.22 cents US on Thursday.

The S&P/TSX composite index closed down 7.52 points at 16,415.16, lower than where it ended a week ago.

In New York, the Dow Jones industrial average was up 319.92 points at 26,816.59. The S&P 500 index was up 32.14 points at 2,970.27, while the Nasdaq composite was up 106.26 points at 8,057.04, after climbing nearly 2.1 per cent in earlier trading.

U.S. investors reacted to hopeful signs of progress in the 15-month trade war with China even though the areas of agreement are narrow and don’t touch on major points of dispute.

The United States is suspending a tariff

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