TSX hits close to 6 weeks as trade tensions rise

TSX dropped 0.8% at 25,128.24

Material group loss 2.1% because of the Golden Falls

RBC shares fell 3.6% after earnings report

9 of the 10 major sectors are lower

(Updated when the market closes)

Ragini Mathur and Fergal Smith

Toronto, Feb. 27 (Reuters) – Canada’s major stock index fell to nearly six-week lows on Thursday, as global trade tensions exacerbated risk avoidance and even as revenues from three of Canada’s top five banks exceeded expectations.

The S&P/TSX composite index dropped by 200.12 points, or 0.8%, at a rate of 25,128.24, removed its earnings in the first three days and released its lowest closure levels since January 17.

This month, TSX’s leading position fell by 1.6%.

“Here, the market will be in a very uncertain state of uncertainty on uncertain territory,” said Michael Sprung, president of Sprung Investment Management.

“What is confusing is mainly concerning tariffs, especially in Canada and Mexico, but now it is also with the EU threatening tariffs.”

U.S. President Donald Trump said he proposed a 25% tariff on Mexican and Canadian goods to take effect on March 4 and threatened to bear 10% responsibility for Chinese imports as deadly drugs are still pouring into the United States from those countries.

On Wednesday, Trump issued a 25% “countdown” tariff on European cars and other goods.

Materials groups, including fertilizer companies and metal mining stocks, lost 2.1% as the dollar grew stronger and lost gold prices.

Royal Bank of Canada, TD Bank and Imperial Bank of Canada reported quarterly profits to beat analyst expectations. Weighted weighted stocks fell 3.6%, TD rose 0.7%, and CIBC fell 0.4%.

The financial sector fell 0.7%, and technology fell 1.2%.

Energy was the only end point in the ten major sectors, up 0.1% as oil prices rose 2.5% and supply issues were $70.35 a barrel.

Veren Inc shares rose 9.4% after oil producers reported better-than-expected quarterly results.

Superior Plus shares eventually grew 11.5%. Utilities providers exceeded quarterly revenue estimates. (Reported by Fergal Smith in Toronto and Ragini Mathur in Bangalore; Editors of Shreya Biswas and Daniel Wallis)