Canada’s main stock index opened lower on Tuesday, hurt by a selloff in energy and materials stocks as prices of most commodities fell on a stronger U.S. dollar, while data showed Canada’s trade surplus doubled in September.
The TSX Composite plunged 205.11 points, or 1%, to begin Tuesday’s session at 19,538,83.
The Canadian dollar sank 0.33 cents at 72.67 cents U.S.
Crescent Point Energy agreed to acquire Hammerhead Energy in a cash-and-stock deal valued at $2.55 billion. Crescent Point shares collapsed 85 cents, or 7.8%, to $10.09.
On the economic docket, Statistics Canada reports in September, Canada’s merchandise exports increased 2.7%, while imports rose 1.0%. As a result, Canada’s merchandise trade surplus widened from $949 million in August to $2.0 billion in September.
The TSX Venture Exchange lost 5.1 points, or 1%, to 513.75.
All but one of the 12 TSX subgroups lost ground in the first hour Tuesday, with energy down 2.9%, gold off 2.6%, and materials slumping 2.2%.
The lone gainer was in information technology, up but 0.2%.
Stocks were mixed Tuesday as traders took a breather following a sharp rally on Wall Street to start November.
The Dow Jones Industrials inched up 3.79 points to start Tuesday trading at 34,099.65.
The S&P 500 index edged up 1.89 points to 4,397.87.
The NASDAQ added 56.24 points to 13,575.02.
Technology stocks moved higher. Some notable gainers included Microsoft, Amazon and Advanced Micro Devices, last up about 1% each. Datadog popped 24% for one of its best days on record after topping quarterly results and offering a strong outlook.
Elsewhere, quarterly results from Disney, Wynn Resorts and Occidental Petroleum are due out this week.
Although November is just getting started, all the major averages are on pace for monthly gains. The Dow is up 3.1%, while the S&P marched ahead 4.1% and NASDAQ has jumped 5.7%.
Prices for the 10-year Treasury gained ground, lowering yields to 4.60% from Monday’s 4.65%. Treasury prices and yields move in opposite directions.
Oil prices dipped $2.76 to $78.66 U.S. a barrel.
Gold prices faltered $20.20 to $1,968.40.