Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(}function setPanelState(o){dom.root.classList[o?"add":"remove"](,dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

Wall Street’s indexes lost some ground on Tuesday afternoon and U.S. Treasury yields dipped as worries about the U.S.-China trade war flared up and euphoria following Friday’s U.S.-Mexico deal faded.

U.S. 3-year Treasury yields dipped on strong demand at an auction of $38 billion worth of new notes and benchmark 10-year note yields were virtually unchanged from the previous session.

A U.S.-Mexico trade and immigration agreement announced Friday had prompted a Monday rally that carried over to Tuesday morning in part because it prompted investor hopes that U.S. President Donald Trump might reach a deal with China.

Story continues below advertisement

But on Tuesday afternoon Trump said he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agrees again to four or five “major points” that he did not specify. Trump is expected to meet with China’s President Xi Jinping at a Group of 20 summit later this month.

“The unresolved trade dispute with China is still a ceiling on the stock market,” said Greg McBride, senior vice president and chief financial analyst at Bankrate in Palm Beach, Florida.

“Don’t expect the S&P 500 to get back to the record high until the trade agreement is signed or close to being signed.”

The Dow Jones Industrial Average fell 14.17 points, or 0.05 per cent, to 26,048.51, the S&P 500 lost 1.01 points, or 0.03 per cent, to 2,885.72 and the Nasdaq Composite dropped 0.60 points, or 0.01 per cent, to 7,822.57.

Canada’s main stock index rose on Tuesday, as higher oil prices aided the energy sector, against the backdrop of optimism in global financial markets over signs of stimulus in the Chinese economy.

The Toronto Stock Exchange’s S&P/TSX Composite index was unofficially up 32.60 points, or 0.20 per cent, at 16,248.76.

Six of the index’s 11 major sectors were higher, led by a 1.4-per-cent increase in materials stocks. West Fraser Timber Co. Ltd. finished 5 per cent higher, while Teck Resources Ltd. was up 4.8 per cent.

Story continues below advertisement

Energy stocks closed 0.5 per cent higher. Cenovus Energy Inc. rose 1.7 per cent, while Canadian Natural Resources Ltd. was up 1.5 per cent.

The pan-European STOXX 600 index rose 0.69 per cent and MSCI’s gauge of stocks across the globe gained 0.23 per cent. Europe had risen due to a surge in Frankfurt’s DAX after German and Swiss market holiday Monday.

Emerging market stocks rose 1.00 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.05 per cent higher, while Japan’s Nikkei rose 0.33 per cent. The Shanghai composite index had closed up 2.6 per cent.

In U.S. Treasuries a drop in two-year Treasury prices flattened the yield curve after Labor Department data showed rising producer prices in May for the second consecutive month, pointing to a steady pick-up in inflation pressure. An increase in prices could temper bets for rate cuts as the Fed uses rate hikes to contain inflation.

The three-year note yield dipped immediately following the auction as prices rose, retracing its rise earlier on Tuesday. It was last up 0.8 basis point at 1.879 per cent.

Benchmark 10-year notes last fell 1/32 in price to yield 2.1448 per cent, from 2.141 per cent late on Monday.

Story continues below advertisement

Gold prices dipped as investors booked profits following robust gains over the past weeks, and demand for safe-haven bets waned due to hopes for a U.S.-China trade deal.

Spot gold dropped 0.1 per cent to $1,326.50 an ounce.

In currency markets, the U.S. dollar index was flat as investors focused on the U.S.-China trade war and economic data for signals of growth and whether the Fed is likely to cut rates in the coming months.

The dollar index fell 0.08 per cent, with the euro up 0.15 per cent to $1.1329.

Earlier, China’s stocks had risen on Beijing easing financing rules to boost local government spending on public works and expectations of lower central bank rates globally

Oil prices were steady on Tuesday, weighed by concerns about a global economic slowdown that could dent crude demand, but supported by expectations that OPEC and its allies will extend their supply curbs.

Story continues below advertisement

Market participants were also awaiting further direction from weekly data on U.S. crude stockpiles, which analysts expect to show a 500,000-barrel drawdown last week from nearly two-year highs.

Industry data from the American Petroleum Institute is due out at 4:30 p.m. EDT (2030 GMT), followed by government’s report is due on Wednesday.

Brent crude futures settled unchanged at $62.29 a barrel, while U.S. West Texas Intermediate (WTI) crude futures edged up 1 cent to end at $53.27 a barrel.

Both Brent and WTI are down roughly 20 per cent from their 2019 peak reached in April. Concern about slowing demand and economic growth has had a large impact on sentiment amid a trade war between the United States and China.

The U.S. Energy Information Administration cut its 2019 world oil demand growth forecast by 160,000 barrels per day to 1.22 million bpd.

“The demand outlook is central to the oil market these days,” said John Kilduff, an analyst at Again Capital LLC. “The global economic data has been chock full of negative surprises, of late, attributable to the fallout from the U.S.-China trade war.”

Story continues below advertisement


Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to If you want to write a letter to the editor, please forward to

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies