The TSX down and the American stock markets in disarray

(Toronto) The main Canadian stock index closed lower on Friday, despite gains recorded by energy stocks, while American stock markets moved in scattered order.

The mood was mixed Friday after a strong week for stocks in Canada and the United States, said Andrew Buntain, vice-president and portfolio manager at Fiduciary Trust Canada.

The S&P/TSX composite index fell 77.01 points to 23,956.82, a day after closing above 24,000 points for the first time on Thursday.

The strength during the week was not limited to North American markets, Buntain noted, as Chinese stocks saw a rally after the country’s central banks announced a series of measures intended to boost growth. ‘economy.

Meanwhile, an undercurrent of diversification continued this week as investors expanded their interest beyond a narrow set of tech giants, Buntain said.

“Some of the sectors that have been ignored for several years have been among the best performing this year,” he said. We are very encouraged by this. »

In New York, the Dow Jones average of industrial stocks advanced 137.89 points to 42,313. The S&P 500 index lost 7.20 points to 5738.17, while the NASDAQ composite index fell 70.70 points to 18,119.59.

A report released Friday on a measure of inflation favored by the U.S. central bank – the personal consumption expenditures price index – showed that inflation continued to ease.

The Federal Reserve began lowering its benchmark rate last week and is expected to continue this fall and into next year.

However, the Fed’s next interest rate decision won’t come until November, Buntain noted, so the central bank still has plenty of data to consider — including the report on next week’s job.

The labor market has become an increasingly important concern for the central bank after recent reports showed a slowdown in that sector of the economy. Friday’s report also showed that consumer spending in August fell short of economists’ expectations.

In Canada, where the Bank of Canada is due to make its next interest rate decision later in October, the GDP report released Friday was a little stronger than expected, Mr. Buntain noted.

“The Bank of Canada has already made three cuts and has signaled the possibility of further reductions,” he said.

If inflation continues to slow, Mr. Buntain added, the Bank of Canada could even announce a very sharp cut of half a percentage point, echoing the Fed’s decision last week.

On the currency market, the Canadian dollar traded at 74.08 US cents compared to 74.22 US cents on Thursday.

On the New York Mercantile Exchange, the price of crude oil rose 51 cents to US$68.18 per barrel and that of natural gas jumped 15 cents to US$2.90 per million BTU.

The gold contract fell US$26.80 to US$2,668.10 per ounce and the copper contract lost four cents to US$4.60 per pound.