CANADA STOCKS-TSX hits 2-week low as financials track bond yields lower

Thu Apr 13, 2017 5:10pm EDT
 
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(Adds portfolio manager , details on bond yields, geopolitics; updates prices)

* TSX closes down 112.92 points, or 0.72 percent, at 15,535.48

* Nine of the TSX's 10 main groups end lower

By Fergal Smith

TORONTO, April 13 (Reuters) - Canada's main stock index fell on Thursday to the lowest in more than two weeks as declining bond yields pressured the heavyweight financials group, while resource shares also lost ground.

Canada's 10-year yield dropped below the 1.50 percent threshold for the first time in nearly five months, tracking a drop in U.S. Treasury yields as U.S. President Donald Trump's favorable view of low interest rates intensified a bond market rally that was underpinned by geopolitical tensions in Syria and North Korea.

News of a massive bomb dropped by the United States in eastern Afghanistan added to uncertainty ahead of a holiday weekend in the United States and Canada.

"Long-term interest rates have moved down, meaning there is a squeeze on margins (of banks) here," said Ian Nakamoto, equity specialist at MacDougall, MacDougall & MacTier, a division of Raymond James.

Royal Bank of Canada fell 1.5 percent to C$94.67, while the overall financials group lost 1 percent.   Continued...