Toronto stocks end lower US markets swing to losses in lateday trading

first_imgCanada’s main stock index closed lower Tuesday while U.S. markets continued a streak of volatility with a late-day plunge that left all main indexes in the red.The sell-off in U.S. markets came a day after one of the best showings in more than two years to recover some of the heavy losses from last week.Tuesday’s return to a down market is part of a continuation of last week’s slide, as concerns on U.S. trade and policies put pressure on markets, said Sid Mokhtari, executive director of portfolio & technical research at CIBC Capital Markets.“It’s more of a follow through that we had from late last week, when we had the sell-off last Thursday and then more follow-through pressure on Friday.”The S&P/TSX composite index closed down 82.38 points to 15,216.18, led by declines in key financial and materials sectors.In New York, the Dow Jones industrial average closed down 344.89 points to 23,857.71. The S&P 500 index was down 45.93 points to 2,612.62 and the Nasdaq composite index was down 211.73 points to 7,008.81.The sell-off came despite easing fears on trade tensions that helped markets rise Monday, including some conciliatory signals from China and U.S. flexibility on steel and aluminum tariff exemptions.The declines look to be part of a wider shift in buyer attitudes in the market, where there’s a greater emphasis on selling and higher volumes on down days, said Mokhtari.“This is almost becoming a market that previously had a buy the dips… and now slowly you’re seeing investors focusing on selling the strength, and that’s becoming something more of a theme.”Mokhtari said the S&P 500 has been testing the 200-day moving average lately, and that if the index drops below that average it could trigger wider sales.“Once that level is breached or violated you’ll probably see a lot of accelerated selling.”The technology sector also weighed on markets Tuesday, with Twitter down 12 per cent and Facebook sliding another five per cent on continued scrutiny of data management practices.The Canadian dollar closed at 77.71 cents US, up 0.11 of a US cent.The May crude contract closed down 30 cents to US$65.25 per barrel and the May natural gas contract ended up six cents to US$2.71 per mmBTU.The April gold contract closed down US$13.00 to US$1,342.00 an ounce and the May copper contract was up three cents to US$3.00 a pound.last_img

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