Canada’s main stock index fell on Friday after talks with the United States ended without a deal on a new North American Free Trade Agreement.
President Donald Trump told the U.S. Congress he plans to sign a trade deal with Mexico in 90 days, which Canada could join “if it is willing,” Trump’s top trade official said on Friday.
In a statement, U.S. Trade Representative Robert Lighthizer said U.S. officials would resume talks with their Canadian counterparts next Wednesday with the aim of getting a deal all three nations could sign.
The S&P/TSX composite index finished down 0.66 per cent, or 108.67 points, to 16,262.88.
Eight of the index’s 11 major sectors were lower, led by the energy sector’s 1.4-per-cent drop as oil prices were pressured by trade worries.
Canadian Natural Resources Ltd. fell 1.9 per cent and Cenovus Energy Inc. declined 2 per cent. Tourmaline Oil Corp. was down 3.6 per cent, while Crescent Point Energy Corp. lost 3.4 per cent.
The heavyweight financials sector slipped 0.1 per cent. Royal Bank of Canada dipped 1.1 per cent, while Bank of Montreal was down 0.6 per cent.
The materials sector, which includes precious and base metals miners and fertilizer companies, lost 0.9 per cent. Teck Resources Ltd., Franco-Nevada Corp. and First Quantum Minerals Ltd. all dipped near 2 per cent.
The S&P 500 ended flat while the Dow edged down and the Nasdaq closed higher in light trading on Friday as trade talks between Canada and the United States concluded without resolution ahead of the Labor Day weekend.
According to the latest available data, the Dow Jones Industrial Average fell 22.1 points, or 0.09 per cent, to 25,964.82, the S&P 500 gained 0.39 points, or 0.01 per cent, to 2,901.52 and the Nasdaq Composite added 21.17 points, or 0.26 per cent, to 8,109.54.
Oil prices slipped on Friday, pressured by renewed concerns that a global trade war could dent energy demand, although impending U.S. sanctions on Iran and falling Venezuelan output limited the decline.
Benchmark Brent crude oil fell 35 cents to settle at $77.42 a barrel. U.S. crude slipped 45 cents to settle at $69.80.
Brent closed the month 4.3 per cent higher while U.S. crude gained 1.5 per cent. Oil has been buoyed by tumbling Venezuelan output and declining shipments from Iran ahead of the imposition of U.S. sanctions on Tehran in November.
On Friday, however, oil “appears to be following equities lower amidst renewed U.S./Chinese tariff concerns that could easily escalate in slowing global economic growth and, hence, world oil demand,” Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.
Reuters, Bloomberg News and The Associated Press