TSX slumps to almost 5-month low on US political worries

Gladys Abbott
May 19, 2017

Canada's main index bounced back in late trading, erasing losses earlier in the day.

The S&P/TSX composite index in Toronto fell 269.65 points to 15,273.68 on Wednesday, its biggest one-day decline of the year. Decliners outnumbers advancers by a 1.4-to-1 ratio overall.

Canada's main stock index slumped on Wednesday to its lowest close in almost five months as global markets anxious that U.S. President Donald Trump's pro-business economic agenda could be slowed by political scandals. Insurer Manulife Financial Corp MFC.TO dropped 3.0 percent to C$23.01.

While eight of the index's 10 main sectors rose, numerous gains were modest and the materials group, which includes precious and base metals miners and fertilizer companies, lost 1.7 percent. Barrick Gold and Goldcorp led the way down, falling 2.5% and 2.8% respectively.

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The materials group was broadly lower today as Trump pessimism impacted expectations for commodities demand.

The Canadian dollar fell $0.0003, remaining at 73 cents.

But on Thursday, New York markets were also sitting in the green.

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