The S&P/TSX composite closes along with U.S. markets on Friday

TORONTO — Canada’s main stock index ended lower on Friday amid broad losses, while U.S. stock markets also closed lower despite earlier gains.

The S&P/TSX composite ended up 66.37 points at 21,875.79 as energy and industrials eased.

The Canadian market was under some pressure after indications of tepid growth.

Statistics Canada said Friday that real gross domestic product rose 0.3 percent in April and that the early reading for May showed growth slowed to 0.1 percent for the month.

The pace is paring some of the gains in the early months of this year as consumers pull back, said Hadiza Djataou, global bond portfolio manager at Mackenzie Investments.

“When you look at the details, consumption is really taking a hit. The Canadian consumer is really feeling the pain of this higher rate that we’ve had for the last two years,” she said.

“So I would say stocks are driven a little bit by that.”

In New York, the Dow Jones industrial average fell 45.20 points to 39,118.86. The S&P 500 was down 22.39 points at 5,460.48, while the Nasdaq composite was down 126.08 points at 17,732.60.

North American markets initially posted gains in the morning after a positive inflation reading.

U.S. consumer prices rose 2.6 percent in May from a year ago, according to the latest personal consumption expenditure index, a key measure for the U.S. Federal Reserve. This signaled a continued decline from a reading of 2.7% in April and is well below the peak of 7.1% two years ago.

The Canadian dollar traded at 73.06 US cents, compared with 73.05 US cents on Thursday.

The wolf was relatively flat after Canadian GDP data did little to sway interest rate cut bets, Djataou said.

“I don’t necessarily feel like it’s increased the odds, but at least it hasn’t significantly decreased the chances of seeing cuts.”

The trajectory of a widening divide between the Canadian and U.S. economies means pressure on the wolf ahead, she said.

“From here we see that the servant is significantly smaller. We expect the currency to reflect the growth environment especially against the US”

Djataou said he had been looking for a market reaction to the US dollar after Thursday’s presidential debate, but said there had been a rather weak reaction.

“The market, I think, is still not pricing in any election results.”

The August crude oil contract was down 20 cents at $81.54 a barrel and the August natural gas contract was down eight cents at $2.60 per mmBTU.

The August gold contract was up $3 at $2,339.60 an ounce, and the September copper contract was up four cents at $4.39 a pound.

This report by The Canadian Press was first published on June 28, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

Ian Bickis, Canadian Press