TSX Ends Notably Lower As Trump Halts Stimulus Talks

(RTTNews) - Canadian shares tumbled towards the end of the session on Tuesday after U.S. President Donald Trump said he has instructed officials to halt stimulus talks with Democrats.

The market, which moved higher after a mild retreat earlier in the day, was moving along the flat line till about a couple of hours before the closing bell.

The benchmark S&P/TSX Composite Index ended the day with a loss of 174.06 points or 1.06% at 16,236.13, about 220 points off an early high of 16,455.84. The index touched a low of 16,205.54.

Materials shares were the most prominent losers. The Capped Materials Index plunged more than 3.75%. Healthcare and information technology shares also felt the heat and posted sharp losses.

Consumer discretionary and consumer staples shares too closed weak, while shares from financial, energy, real estate and utilities sections ended mixed.

In economic news, data from Statistics Canada showed Canada's trade deficit narrowed to C$ 2.45 billion in August 2020 from an upwardly revised C$ 2.53 billion in the previous month. Exports dropped 1% to C$ 44.93 billion and imports were down at a faster 1.2% at C$ 47.38 billion.

U.S. stocks closed sharply lower on Tuesday following a massive sell-off in the final hour after having spent much of the day's session in positive territory.

The Dow, which had surged to 28,354.48, ended the day with a loss of 375.88 points or 1.34% at 27,772.76. The Nasdaq plunged 177.88 points or 1.57% to settle at 11,154.60, while the S&P 500 slumped 47.66 points or 1.4% to 3,360.97.

U.S. President Donald Trump's tweet that he would end negotiations on a new fiscal stimulus package sent shivers and triggered the sell-off. Trump said he has instructed his administration's negotiators to stop stimulus discussions with Democrats until after the Nov.3 presidential election.

Stock markets across the Asia-Pacific region ended mostly higher. The major European markets too closed higher on stimulus hopes.

In commodities, West Texas Intermediate Crude oil futures for November ended up $1.45 or about 3.7% at $40.67 a barrel.

Gold futures for December ended down $11.30 or about 0.6% at $1,908.80 an ounce, after having advanced to $1,927.00 earlier in the session.

Silver futures for December closed lower by $0.639 or about 2.6% at $23.921 an ounce, while Copper futures for December edged up $0.0025 or 0.02% to $2.9635 per pound.