Trump Tariff Threats Hurt Stocks

May 31, 2019 (Baystreet.ca via COMTEX) —

Equities in Canada’s largest centre slipped at the open on Friday, as energy shares were hit by a more than 2% drop in oil prices, following President Donald Trump’s shock threat of tariffs on Mexico.

The S&P/TSX Composite Index plummeted 125.93 points to open the final session of May at 15,963.31

The Canadian dollar fell 0.26 cents to 73.84 cents U.S.

CIBC raised target price on BRP Inc. to $52.00 from $50.00

National Bank of Canada raised the target price on Lightspeed POS to $30.00 from $25.00

Credit Suisse cut the target price on National Bank to $64.00 from $65.00

On the economic calendar, Statistics Canada reported that Canada’s economy made its way upward- during March. Gross Domestic Product grew 0.1% in the first quarter, the same growth rate as the fourth quarter of 2018.

Real gross national income rose 0.9%, largely because of higher export prices of crude oil and crude bitumen.

Elsewhere, the agency’s industrial product price index rose 0.8% in April, driven mainly by higher prices for energy and petroleum products, while the raw materials price index increased 5.6%, primarily on the strength of higher crude energy product prices.

ON BAYSTREET

The TSX Venture Exchange gave back 3.57 points to 598.93.

All but two of the 12 Toronto subgroups were lower in the first hour, as health-care stocks tumbled 2.8%, energy lost 1.7%, and consumer discretionary stocks let go of 1.2%.

The two gainers were gold, up 3.1%, and materials, ahead 1.6%

ON WALLSTREET

Stocks tanked on Friday as investors feared President Donald Trump’s surprise threat of tariffs on all Mexico imports, amid a worsening trade war with China, could risk sending the U.S. economy into a recession.

The Dow Jones Industrials faded 309.63 points, or 1.2%, to 24,860.25

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