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Negative Start to Short Week

(CONTAINS ERROR IN BOND PRICE PARAGRAPH) Stocks in Canada’s largest market dipped at the outset ...

(CONTAINS ERROR IN BOND PRICE PARAGRAPH)

Stocks in Canada’s largest market dipped at the outset Tuesday, weighed by falls among financial stocks, while Cenovus Energy and Canadian Natural Resources both jumped after announcing a deal for Cenovus’ Pelican Lake assets.

The S&P/TSX Composite Index plummeted 85.35 points to begin a short week at 15,106.25

The Canadian dollar added 0.33 cents to 80.90 cents U.S.

Cenovus Energy said it would sell its Pelican Lake heavy oil operations in Alberta for $975 million and the oil company is also considering sale of other assets to reduce debt.

Cenovus shares gained 34 cents, or 3.4%, to $10.29. Natural Resources shares picked up 21 cents to $38.95.

The head of a top business lobby said trade negotiators from Canada, the United States and Mexico have made headway on issues including energy, small businesses and telecommunications in talks to revamp the North American Free Trade Agreement

TD Securities cut the price target on Metro Inc. to $44.00 from $49.00. Metro shares lost 58 cents, or 1.4%, to $40.24.

RBC cut the target price on Primero Mining to $0.10 from $0.80. Primero shares were down one cent, or 8.3%, to 11 cents.

ON BAYSTREET

The TSX Venture Exchange gained 4.73 points to 783.18

All but two of the 12 TSX subgroups were lower to start Tuesday, with financials and consumer discretionaries each down 0.9%, while industrials weakened 0.8%.

The lone gainers in the first hour were gold, gathering 1.2%, and energy, ahead 0.2%.

ON WALLSTREET

U.S. equities fell on Tuesday, the first trading day of the week, as tension between North Korea and the West sent jitters down Wall Street.

The Dow Jones Industrials tumbled 126.37 points to 21,861.19, with United Technologies and Goldman Sachs contributing the most to the losses. United Technologies' stock dropped after announcing a $30 billion mega-deal to buy Rockwell Collins.

The S&P 500 tacked on 8.5 points to 2,468.14, with financials leading seven sectors lower. Insurers XL Group and Everest Re Group were the biggest decliners in the index as the threat of Hurricane Irma hitting Florida increased.

The NASDAQ lost 23.42 points to 6,411.91, as shares of Amazon and Alphabet both dropped.

North Korea successfully tested a hydrogen bomb that can be mounted onto an intercontinental ballistic missile. This was North Korea's sixth nuclear test since 2006 and its most powerful to date.

Prices for the benchmark 10-year Treasury note gained ground, dropping yields to 2.1% from Friday’s 2.16%. Treasury prices and yields move in opposite directions.

Oil prices recovered nine cents to $47.32.

Gold prices jumped $8.90 to $1,331.10 U.S. an ounce.