Financial, Energy Stocks Drag TSX Lower

(RTTNews) - Despite buoyant GDP data, the Canadian stock market opened lower on Friday and stayed in negative territory right through the session, as uncertainty about the North American Free Trade Agreement (NAFTA) hurt sentiment and dragged down share prices.

The Canadian government shrugged off U.S. President Donald Trump's remarks that talks between Canada and the U.S, with regard to modernization of NAFTA were moving slowly, saying Canada would keep negotiating till its interests are taken care of.

U.S. Trade Representative Robert Lighthizer recently said the U.S. is prepared to move ahead with the deal replacing the North American Free Trade Agreement without Canada.

On the economic front, Statistics Canada's report showed the country's real gross domestic product grew 0.2% in July after coming in unchanged in June. This is likely to prompt Canada's central bank to raise interest rates in October.

Meanwhile, industrial product price index was down 0.5% in August, due largely to lower prices for primary non-ferrous metal products. The Raw Materials Price Index declined 4.6%.

Financial, energy and consumer discretionary stocks were among the most prominent losers.

The benchmark S&P/TSX Composite Index ended down 131.48 points, or 0.81%, at 16,073.14, after scaling a low of 16,063.70 and a high of 16,177.49 intraday.

Despite crude oil's sharp rise, Canadian energy stocks declined today. The Capped Energy Index shed 1.13%. Suncor Energy Inc. (SU.TO), Canadian Natural Resources (CNQ.TO), Encana Corporation (ECA.TO) and Imperial Oil (IMO.TO) ended notably lower.

The Capped Consumer Discretionary Index ended 1.72% down. The Stars Group Inc. (TSGI.TO) declined by 4.2%. Magna International Inc. (MG.TO), Dollarama Inc. (DOL.TO) and Canadian Tire Corporation (CTC.A.TO) lost 2 to 3%.

The Capped Financial Index lost nearly 1%. Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO), Bank of Nova Scotia (BNS.TO), Bank of Montreal (BMO.TO), Canadian Imperial Bank Of Commerce (CM.TO) and Canadian Imperial Bank Of Commerce (NA.TO) lost 0.75% - 1.2%.

Manulife Financial Corporation (MFC.TO), Sun Life Financial Inc. (SLF.TO) and Brookfield Asset Management Inc. (BAM.A.TO) ended lower by 0.9% - 1.2%.

The Capped Materials Index shed 0.51%. Barrick Gold Corporation (ABX.TO), CCL Industries Inc. (CCL.B.TO) and Methanex Corporation (MX.TO) declined sharply.

The Telecommunications Index ended 1% down. BCE Inc. (BCE.TO), TELUS Corporation (T.TO), Rogers Communications Inc. (RCI.B.TO) and Cogeco Communications Inc. (CCA.TO) declined by 1 to 2%.

Asian markets ended mostly higher on Friday. The European markets ended Friday's session firmly in the red. Bank stocks, especially Italian bank stocks, were hard hit by the concerns raised by Italy's budget proposal.

Italy's new government offered a budget with a deficit target three times as big as the previous administration's goal, putting the country at odds with the European Union.

The U.S. market ended flat, with uncertainty about trade contributing to the lackluster performance.

In commodities, Crude oil futures for November delivery ended up $1.13, or 1.6%, at $73.25 a barrel, the highest settlement price in two months.

Gold futures for December ended up $8.80, or 0.70%, at $1,196.20 an ounce.

Silver futures for December settled at $14.712 an ounce, gaining $0.422 for the session, while Copper futures for December ended up $0.220, at $2.8050 per pound.