July 3, 2020

Winnipeg
25° C, A few clouds

Full Forecast

WEATHER ALERT

Help us deliver reliable news during this pandemic.

We are working tirelessly to bring you trusted information about COVID-19. Support our efforts by subscribing today.

No Thanks Subscribe

Already a subscriber?

Advertisement

Advertise With Us

North American stock markets dive on prospect of U.S. impeachment proceedings

Hey there, time traveller!
This article was published 24/9/2019 (282 days ago), so information in it may no longer be current.

A man works in the TMX broadcast centre in Toronto, May 9, 2014. THE CANADIAN PRESS/Darren Calabrese

A man works in the TMX broadcast centre in Toronto, May 9, 2014. THE CANADIAN PRESS/Darren Calabrese

TORONTO - North American stock markets fell back Tuesday with the prospect that Democrats were finally prepared to take steps towards the impeachment of U.S. President Donald Trump.

Markets started the day stronger on overnight tariff news out of China but dropped as reports surfaced that House Speaker Nancy Pelosi was willing to open an impeachment inquiry over suggestions that Trump may have sought a foreign government's help in his re-election bid.

"Everything started as soon as that came out," said Sid Mokhtari, executive director of institutional equity research at CIBC.

"You can certainly say the market did respond to it negatively and as soon as we started hearing the proceedings of impeachment, at least the thought processes of it coming on the table, the market did actually pick up a lot of downside selling pressure."

The S&P/TSX composite index closed down 68.87 points at 16,798.33 after hitting an intraday high of 16,917.62.

Health care sustained the largest loss of the 10 major sectors on the TSX as several cannabis companies were in the red, including Cronos Group Inc. and Aurora Cannabis Inc.

The technology sector lost 2.54 per cent as BlackBerry stock fell 22.7 per cent after the company's second-quarter revenue fell short of analyst estimates as it experienced difficulties in a legacy unit that sells software and services to businesses.

Energy was also lower with Encana Corp. and Crescent Point Energy Corp. dipping on lower crude oil prices as Saudi Arabia had restored a large share of its output damaged after attacks on its installations.

"It was surprising to hear how quick the response was and how quickly they are going to be able to actually put everything back in order," Mokhtari said in an interview.

Materials rose with the price of gold. The December gold contract was up US$8.70 at US$1,540.20 an ounce and the December copper contract was down half a cent at US$2.61 a pound.

The Canadian dollar traded for an average of 75.48 cents US compared with an average of 75.36 cents US on Monday.

In New York, the Dow Jones industrial average was down 142.22 points at 26,807.77. The S&P 500 index was down 25.18 points at 2,966.60, while the Nasdaq composite was down 118.84 points at 7,993.63.

Stock markets have increased substantially during Trump's presidency so any threat of his removal would hit investors hard, Mokhtari said.

"There's a general consensus out there if there is impeachment and if there is potential of Mr. Trump being removed, this market would be susceptible to a severe correction."

Trump's tweet that he will release a transcript of his conversation with Ukraine's president didn't help markets recover. Trump allegedly pressed Ukraine to investigate Democratic presidential candidate Joe Biden and his son Hunter, possibly in exchange for military sales.

"His tweets are probably slowly losing the kind of impact that they used to have."

This report by The Canadian Press was first published Sept. 24, 2019.

Companies in this story: (TSX:BB, TSX:CPG, TSX:ECA, TSX:CRON, TSX:ACB, TSX:GSPTSE, TSX:CADUSD=X)

Advertisement

Advertise With Us

Your support has enabled us to provide free access to stories about COVID-19 because we believe everyone deserves trusted and critical information during the pandemic.

Our readership has contributed additional funding to give Free Press online subscriptions to those that can’t afford one in these extraordinary times — giving new readers the opportunity to see beyond the headlines and connect with other stories about their community.

To those who have made donations, thank you.

To those able to give and share our journalism with others, please Pay it Forward.

The Free Press has shared COVID-19 stories free of charge because we believe everyone deserves access to trusted and critical information during the pandemic.

While we stand by this decision, it has undoubtedly affected our bottom line.

After nearly 150 years of reporting on our city, we don’t want to stop any time soon. With your support, we’ll be able to forge ahead with our journalistic mission.

If you believe in an independent, transparent, and democratic press, please consider subscribing today.

We understand that some readers cannot afford a subscription during these difficult times and invite them to apply for a free digital subscription through our Pay it Forward program.

The Free Press would like to thank our readers for their patience while comments were not available on our site. We're continuing to work with our commenting software provider on issues with the platform. In the meantime, if you're not able to see comments after logging in to our site, please try refreshing the page.

You can comment on most stories on The Winnipeg Free Press website. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or digital subscriber to join the conversation and give your feedback.

Have Your Say

Have Your Say

Comments are open to The Winnipeg Free Press print or digital subscribers only. why?

Have Your Say

Comments are open to The Winnipeg Free Press Subscribers only. why?

By submitting your comment, you agree to abide by our Community Standards and Moderation Policy. These guidelines were revised effective February 27, 2019. Have a question about our comment forum? Check our frequently asked questions.

Advertisement

Advertise With Us