Canada’s resource-heavy main stock index slipped at the open on Monday as materials shares fell, dragged down by precious metal prices, while data showed contraction in Canada’s factory activity deepened in September.
The TSX Composite stubbed its toes out of the gate, losing 43.25 points in the first hour to 19,498.02.
The Canadian dollar skidded 0.32 cents at 73.34 cents U.S.
Laurentian Bank named insider Eric Provost as CEO, weeks after announcing it would simplify its organizational structure after it failed to find a buyer during a strategic review. Laurentian shares dropped 83 cents, or 2.7%, to $29.44.
On the economic slate, the Markit Canada Manufacturing PMI fell further below the crucial 50.0 no-change mark in September to 47.5, from 48.0 in August. It was the fifth successive month that a deterioration in operating conditions has been registered, and the latest PMI number was the lowest since May 2020.
ON BAYSTREET
The TSX Venture Exchange faded 2.51 points to 556.37.
Seven of the 12 TSX subgroups were lower, with gold down 1.6%, materials off 1.2%, and communications sliding 0.5%.
The five gainers were led by information technology, up 0.3%, consumer discretionary stocks, inching ahead 0.2%, and industrials, 0.1% better than breakeven.
ON WALLSTREET
Stocks were mostly flat Monday even after U.S. legislators were able to come to a short-term agreement that staved off a government shutdown.
The Dow Jones Industrials stayed in the red 110.03 points to begin the day, week and month at 33,397.47.
The S&P 500 index lost 4.65 points to 4,283.90.
The NASDAQ index gained 49.12 points to 13,268.44.
Shares of electric vehicle maker Tesla fell 1.5% after reporting a drop in total production and delivery volumes for the third quarter.
Cryptocurrency-related stocks such as Coinbase advanced 5.5%, and Marathon Digital gained 12.7%, as crypto prices rallied.
The communications services and technology sectors were the only positive industries in the broad market index. Communication services added 1%, while tech sector traded 0.8% higher.
The Senate passed a continuing resolution with just hours to spare before a midnight deadline Saturday, which was then signed by President Joe Biden into law. The bill keeps the government open through mid-November, an extended period that lawmakers can use to finalize funding legislation.
The initial reaction to the shutdown deal was positive with equity futures in the green for most of Sunday evening into Monday. But futures fell into the red before markets officially opened as investors turned their focus back to surging interest rates near 15-year highs.
Prices for the 10-year Treasury dipped, raising yields to 4.64% from Friday’s 4.58%. Treasury prices and yields move in opposite directions.
Oil prices sank 51 cents to $90.28 U.S. a barrel.
Gold prices faded $16.10 to $1,850.00.