Stocks Flat at Friday Open
Canada's main stock index ticked not much higher at the open on Friday after U.S. President Donald Trump said a report about a trade deal with China was completely wrong, dashing hopes the two sides would arrive at an agreement.
The TSX Composite Index opened Friday up only 12.83 points at 16,959.73
The Canadian dollar docked 0.13 cents at 75.90 cents U.S.
Mexico's Senate on Thursday overwhelmingly approved the revised U.S.-Mexico-Canada Agreement trade deal that includes tougher enforcement of worker rights and the elimination of a patent provision for biologic drugs.
The scrapping of a second Canadian IPO in as many months this week caps a year of declining activity, highlighting the challenges facing issuers as trade uncertainty and the growth of passive investing weigh on new offerings.
CIBC cut the target price on Empire Company to $34.00 from $39.00. Empire fell 73 cents, or 2.3%, to $30.87.
The TSX Venture Exchange gained 2.5 points to 539.02.
Even so, eight of the 12 subgroups were moving north, with information technology, up 0.8%, while health-care gathered 0.4%, and real-estate progressed 0.3% .
The four losing groups were weighed most by communications, fading 0.7%, consumer staples, shedding 0.4%, and energy, sliding 0.2%.
Stocks rose on Friday after Chinese officials said China and the U.S. reached an agreement on the text of the phase one trade deal.
The Dow Jones Industrials hiked 116.48 points to open the week’s last session at 28,248.53.
The S&P 500 gained 10.91 points to 3,179.48, improving on Thursday’s record close.
The NASDAQ hurtled higher 49.79 points to 8,765.11, also posting an all-time closing high.
The next step is for both sides to go through legal steps and set a time for signing the deal. Chinese officials also said tariffs would be rolled back in phases.
Friday’s move comes after various media sources reported Thursday the U.S. agreed to a so-called phase one trade deal with China in principle
Prices for the 10-Year U.S. Treasury gained slightly, lowering yields to 1.8% from Thursday’s 1.90%. Treasury prices and yields move in opposite directions.
Oil prices gained 50 cents to $59.68 U.S. a barrel.
Gold prices 50 cents at $1,472.80 U.S. an ounce.