TSX, Wall Street end lower as Turkey woes hit banks

Cornelia Mascio
Agosto 12, 2018

US stock-index benchmarks slumped to start Friday trade, tracking a global equity retreat fueled by a mounting currency crisis in Turkey, which raised the alarm for possible contagion into other markets.

Data on Friday showed USA consumer prices rose in July and the underlying trend continued to strengthen, pointing to a steady increase in inflation pressures.

"Problems in emerging markets are more important than ever because of the global growth engine that emerging markets have become", Peter Cecchini, chief market strategist at Cantor Fitzgerald in NY, wrote in a note.

The S&P 500 is up 13.23 points, or 0.5 per cent. "You have banks losing because the 10-year U.S. Treasury (yield) came down".

Rite Aid (RAD.N) fell 11.5 percent after the drug store chain and US grocer Albertsons Cos ABS.N agreed to terminate their merger agreement.

The S&P 500 opened lower by 13.94 points, or 0.49 per cent, at 2,839.64.

Crude oil prices tumbled more than 3.5 percent on slowing Chinese demand and trade issues, leading to a 1.29 percent drop in the energy sector, which was also the biggest drag on the S&P.

The S&P 500 plunged 20.30 points, or 0.7 per cent, to 2,833.28.

For the week, the Dow fell 0.6 per cent and the S&P 500 dipped 0.3 per cent.

Tesla Inc's (TSLA.O) shares also fell to a two-day low and wiped out all of the gains fueled by Chief Executive Elon Musk's recent tweet announcing a plan to take the company private.

Shares in trade-sensitive companies fell. The number of Tesla shares sold short rebounded and are now higher than before Chief Executive Elon Musk on Tuesday proposed taking the electric auto maker private, according to data from financial technology and analytics firm S3 Partners.

The S&P 500 posted 12 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 82 new highs and 88 new lows.

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