The Canadian Press
Published Tuesday 4 & # 39; December 2018 5:37 pm EST
Last updated Tuesday 4 & # 39; December 2018 5:40 PM EST
TORONTO – The markets & # 39; American & # 39; America fell on Tuesday as movements in the bond market showed a potential recession before, and led to a decrease in the industrial, of & # 39; energy and key financial.
The yield on Treasury notes & # 39; two and three years exceeded notes & # 39; five f & # 39; partial inversion of the yield curve that & # 39; often brings about a recession in the coming years, says Craig Jerusalim, portfolio manager at & # 39; CIBC Asset Management.
"The market will associate that with & # 39; & # 39 higher risk, recession and as a result assets & # 39; risk being sold across the board," he said.
In addition, note Treasury & # 39; & # 39 years and; 10 years failed to spread their closest since 2007.
Historically, reverse & # 39; those notes typically takes six to 12 months before a recession.
"So this partial reversal does not necessarily mean that the clock started ticking since then," he said in & # 39; interview. "It's a potential sign that can & # 39; to."
Moreover, markets have reduced enthusiasm on the China-U.S. Trade deals after comments from both sides and the continuous noise of Brexit, Gibraltar added.
The composite index S & P / TSX suffered the biggest loss of & # 39; & # 39 day in, six weeks increased by 211.39 points to 15063.59.
All sectors but telecommunications and utilities fell, led by reductions & # 39; 4.59 per cent of health care, followed by industrials, energy, technology, financial and consumer discretionary.
The health care fell as shares & # 39; Aphria Inc. decreased by & # 39; 21 in another hundred after the short sellers report that aims to recent acquisitions in Latin America raised questions about its operations in the region.
Despite the strong results & # 39; quarterly, the BMO shares dropped when the bank did not achieve its goals at the operational level.
Meanwhile, Teck Resources Ltd. gained 2.1 percent after selling its stake in project & # 39; Chilean copper mine which will enable Vancouver company remains & # 39; with positive cash flow.
Also partially offsetting the decline in the TSX were higher prices for oil and gold.
The crude contract & # 39; & # 39 was in January; 30 cents to US $ 53.25 per barrel and natural gas contract & # 39; & # 39 was in January; 11.8 cents to US $ 4.46 per mmbtu.
The gold contract & # 39; & # 39 was in February; US $ 7.00 to US $ 1246.60 an ounce and copper contract & # 39; & # 39 was in March; 5.05 cents to US $ 2.76 a pound.
The Canadian dollar traded b & # 39; average & # 39; 75.65 US cents compared with & # 39; average & # 39; 75.81 cents US on Monday.
In New York, the Dow Jones industrial average fell 3.1 percent by losing 799.36 points to 25027.07. The index & # 39; S & P 500 fell 90.31 points at & # 39; 2.700.06, while the Nasdaq composite lost 3.8 percent or 283.09 points to 7158.43.
following potential negative catalysts are another increase in the rate of the Federal Reserve and report on employment on Friday. The US markets are closed Wednesday for a national day of & # 39; sadness for former President George H.W. Bush.
"Investors were jittery this season & # 39; all proceeds", noted Jerusalim.
"Any company that has shown some signs of & # 39; disappointment was punished too and I think this is just another indication that the m market & # 39; has high confidence and therefore evaluations already contracted and x & # 39; likely to continue contracting. "