TSX edges lower as U.S. earnings dent sentiment

Tue Oct 11, 2016 5:01pm EDT
 
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index edged lower on Tuesday as a disappointing start to U.S. earnings season weighed, offsetting gains for the shares of energy companies after a move higher in oil prices.

Modest losses for the TSX follow a market holiday on Monday when the price of Brent oil reached its highest in a year.

"Investors in Canada are digesting more than just their Thanksgiving weekend meals today, they are also taking in the start of U.S. third quarter earnings season," said Stan Wong, director of wealth management at ScotiaMcLeod.

Wall Street also ended lower as disappointing corporate reports gave a sour tone to the start of earnings season and investors digested possible changing dynamics in the run up to the Nov. 8 U.S. elections.

"North American equity market valuations are still feeling full ... for a meaningful move higher in equity markets we need accelerated global growth and a stronger earnings recovery," Wong said.

The Toronto Stock Exchange's S&P/TSX composite index closed down 16.66 points, or 0.11 percent, at 14,549.60.

Eight of the index's 10 main groups ended lower.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 0.6 percent.   Continued...

 
A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.  REUTERS/Mark Blinch