Canadian Stocks Remain Firmly Negative After Early Move To The Downside

(RTTNews) - Canadian stocks came under pressure early in the trading session on Friday and remained firmly negative throughout the day.

The S&P/TSX Composite Index climbed off its worst levels of the day but still slid 105.38 points or 0.6 percent to 16,271.66, its lowest closing level in nearly two months.

The weakness on Bay Street came amid concerns about the global economy after President Donald Trump announced plans to impose a 10 percent tariff on the remaining $300 billion worth of Chinese imports.

Trump revealed the plan shortly after U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin wrapped up the latest round of trade talks in Shanghai.

The president accused China of failing to follow through on pledges to buy large quantities of U.S. agricultural products and stop the sale of Fentanyl to the U.S.

The new tariffs announced by Trump represent the latest escalation in the trade war between the U.S. and China, which has been a dark cloud over the global economy for over a year.

In typical fashion, China responded to Trump's announcement by threatening to take necessary countermeasures to protect the country's interests.

Technology stocks are turning in some of the market's worst performances on the day, dragging the S&P/TSX Information Technology Index down by 2.9 percent.

Significant weakness was also visible among energy stocks, which saw further downside despite a rebound by the price of crude oil.

Materials, industrial and financial stocks also saw considerable weakness, while healthcare stocks bucked the downtrend and showed a substantial move to the upside.