Canada’s main stock index ticked higher on Monday, as investors fled to the safety of gold which boosted the materials sector, but worries of a global economic slowdown kept a lid on further gains.
The S&P/TSX Composite Index came off its highs of the morning, but remained afloat 15.08 points to greet noon at 16,052.57
The Canadian dollar regained 0.29 cents to 74.24 cents U.S.
Top percentage gainers on the TSX were shares of gold miners Eldorado Gold, which jumped 38 cents, or 7.6%, to $5.41, followed by a 31-cent, or 4%, rise in Centerra Gold to $8.05.
Onex fell $2.44, or 3.2%, the most on the TSX, to $74.65, followed by shares of Canopy Growth, down $1.54, or 2.8%, to $52.94.
On the economic calendar, IHS Markit Canada reported that its Manufacturing Purchasing Managers’ Index dropped from 49.7 in April to 49.1 in May, signaling a second successive monthly deterioration in business conditions.
ON BAYSTREET
The TSX Venture Exchange headed south 1.42 points to 600.13.
Eight of the 12 Toronto subgroups gained ground by midday Monday, with gold and materials stronger 1.9% each, and communications better by 0.5%.
The four laggards were weighed most by health-care, plunging 2.1%, information technology, sliding 1.8%, and energy, dumping 0.6%.
ON WALLSTREET
The Dow Jones Industrial Average rose on Monday, the first trading day of the month, as gains in bank shares and Apple helped Wall Street shrug off worries over U.S.-China trade and slowing manufacturing growth.
The 30-stock index recovered 22.35 points to observe noon at 24,837.39. The Dow came into Monday’s session having logged in six straight weeks of losses, the index’s longest weekly slide since 2011.
The S&P 500 doffed 0.78 points to 2,751.28, off its lows of the morning, as the financials and industrials sectors rose at least 1% each.
The NASDAQ Composite stayed in the red 49.74 points to 7,403.41, amid worries about stricter regulations hitting the technology sector.
Shares of J.P. Morgan Chase, Citigroup and Bank of America all traded higher. Apple shares’ climbed 0.9%.
Shares of Boeing, a trade bellwether of global trade, fell 2.6%. Alphabet shares dropped 6.2% after the Justice Department is reportedly investigating the tech company for anti-trust violations. Facebook also fell nearly 4% on broader worries that the technology sector could face tougher regulations in the future.
Alphabet shares slid 6.5% after reports said the Justice Department is preparing to launch an antitrust probe on Google. Facebook shares declined by 4% as the news sparked fears the social media company could also be hit with tougher regulations.
On the data front, a final reading of manufacturing PMI (Purchasing Managers’ Index) showed manufacturing activity slowed to its slowest pace since September 2009. The Institute for Supply Management (ISM) manufacturing index for May, construction spending figures for April and latest light vehicle sales data will all follow slightly later in the session.
Prices for the benchmark 10-year U.S. Treasury faded, raising yields back to Friday’s 2.13%. Treasury prices and yields move in opposite directions.
Oil prices dipped five cents to $53.45 U.S. a barrel.
Gold prices added $12.60 at $1,323.70 U.S. an ounce.