CANADA STOCKS-TSX slips as Trump talk weighs on auto stocks

Mon Jan 16, 2017 10:56am EST
 
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(Adds details on specific stocks, updates prices)

* TSX down 36.94 points, or 0.24 percent, at 15,460.34

* All of the TSX's 10 main groups move lower

TORONTO, Jan 16 (Reuters) - Canada's main stock index pulled back in morning trade on Monday, with several auto parts makers losing ground as U.S. President-elect Donald Trump upped pressure on carmakers to build locally.

The most influential weights on the Toronto Stock Exchange's S&P/TSX composite index included Magna International Inc, which fell 3.3 percent at C$56.86, and Linamar Corp , which lost 3.7 percent to C$55.51. Both stocks were at more than one-month lows.

Trump warned German carmaker BMW he would impose a border tax of 35 percent on vehicles they build in Mexico and export to the U.S. market, according to excerpts of a German newspaper interview released on Sunday.

While most of Trump's attention has been focused on the use of Mexican plants, it is not clear that Ontario's auto industry, closely intertwined with that of Detroit, would escape unharmed.

At 10:34 a.m. ET (1534 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 36.94 points, or 0.24 percent, to 15,460.34. All 10 main sectors fell.

Stella-Jones Inc slumped 8.5 percent to C$39.07 after several banks cuts their price targets and recommendations on the lumber company after it said lower demand for railway ties would hurt its quarterly profit and revenue.   Continued...