TSX Snaps Winning Streak, Ends Weak On Growth Worries

(RTTNews) - The Canadian stock market ended lower on Tuesday, snapping a six-day winning streak, after the International Monetary Fund once again cut its global growth forecast for the year.

The U.S. government's threat to impose tariffs on a wide range of goods from the European Union, in retaliation to the EU subsidies to Airbus, added to the worries.

Investors were also reluctant to make significant purchases ahead of some crucial economic data and corporate results from the U.S.

According to reports, U.S. Trade Representative Robert Lighthizer estimates the harm from the EU subsidies as $11 billion in trade each year, with the amount subject to arbitration at the World Trade Organization.

The benchmark S&P/TSX Composite Index ended down 70.84 points, or 0.43%, at 16,336.45. The index touched a low of 16,294.26 in the session.

Energy, healthcare and financial shares were among the notable losers in the Canadian market today.

Consumer discretionary, consumer staples, materials and industrials shares turned in a mixed performance, while information technology shares found fairly good support.

Encana Corporation (ECA.TO) and Baytex Energy (BTE.TO) declined by 4.3% and 2.3%, respectively. Cenovus Energy (CVE.TO) shed about 0.8% and Suncor Energy (SU.TO) ended lower by about 1.4%.

Among materials shares, Kinross Gold Corporation (K.TO) gained 1.3%, B2Gold Corp. (BTO.TO) jumped 2.75% and Barrick Gold Corporation (ABX.TO) advanced 1.6%.

In the healthcare index, Aurora Cannabis (ACB.TO), Green Organic Dutchman Holdings (TGOD.TO), Aphria Inc. (APHA.TO), CannTrust Holdings Inc. (TRST.TO) and Hexo Corp. (HEXO.TO) declined 2.2 to 4.4%.

Among bank stocks, Toronto-Dominion Bank (TD.TO) lost 1.7%. Royal Bank of Canada (RY.TO), Bank of Nova Scotia (BNS.TO), Bank of Montreal (BMO.TO) and Canadian Imperial Bank of Commerce (CM.TO) ended with modest losses, while National Bank of Canada (NA.TO) edged up marginally.

Shaw Communications Inc. (SJR.B.TO) shares declined 3.2% despite an announcement from the company that it remains on track to meet its fiscal 2019 guidance, which includes consolidated operating income before restructuring costs and amortization growing 4 to 6% over fiscal 2018.

Trilogy Metals Inc. (TMQ.TO) reported a net loss of $4.3 million (or $0.03 basic and diluted loss per common share) which was higher than the net loss of $2.9 million for the corresponding period in 2018 (or $0.03 basic and diluted loss per common share). The stock edged down marginally.

Canada Goose Holdings Inc. (GOOS.TO) today announced that it plans to open six new stores with two in Europe, one in the United States and three in Canada this year. The stock jumped 3.4%.

U.S. stocks moved lower with traders turning cautious ahead of inflation data and earnings season. The Dow slid 0.7%, while the Nasdaq and the S&P 500 both ended lower by 0.6%.

European stocks mostly closed weak and Asian markets turned in a mixed performance on Tuesday.

On Monday, the United States threatened that it would impose tariffs on a wide range of goods from Europe, protesting against subsidies given to Airbus.

According to reports, the U.S. may impose tariffs on about $11 billion of EU products ranging from aircraft parts to wine.

Meanwhile, a European Commission spokesman called the estimated adverse effects of the subsidies "greatly exaggerated" and pledged to retaliate against any new U.S. tariffs.

The IMF today downgraded its outlook for growth in the United States, Europe, Japan and the overall global economy, citing the trade tensions, weaker business confidence, tighter financial conditions and higher policy uncertainty.

The IMF said in its World Economic Outlook that it expects the world economy to grow 3.3% this year, down from 3.6% in 2018. That would match 2016 for the weakest year since 2009. In its previous forecast in January, the IMF had predicted that international growth would reach 3.5% this year.

In commodities, West Texas Intermediate Crude oil futures for May ended down $0.42, at $63.98 a barrel, after rising to a high of $64.79.

Gold futures for June settled at $1,308.30, gaining $6.40 for the session.

Silver futures for May ended up $0.005, at $15.211 an ounce, while Copper futures for May settled at $2.9340 per pound, up $0.0020 from previous close.