TSX closes in red as Trump’s Fed criticism shakes markets #CanadaFinance

By Ragini Mathur and Divya Rajagopal

(Reuters) -Canada’s commodity-heavy main stock index closed down on Monday, led by a decline in energy shares, as tensions over U.S. President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell spilled into the Toronto Stock Exchange.

The benchmark S&P/TSX Composite Index closed down 0.7% at 24,008.86 points, snapping its five-session winning streak.

Uranium shares were particularly hard-hit, with shares of leading uranium mining companies falling between 5% and 10%. Energy Fuels Inc, a uranium and rare earths-focused miner, fell 10% over tariff worries and curbs by China on rare earths exports. Denison Mines, a Saskatchewan-based miner, closed 7% lower and Nexgen Energy, another uranium miner, fell 6%.

“There is definitely overhang on the (uranium) sector and a lot of it has to do with getting some clarity with respect to how tariffs were going to impact the uranium market in the United States,” said John Ciampaglia, chief executive officer of Sprott Asset Management.

Monday’s gainers were gold miners, which continued their green streak as spot gold price broke above the $3,400/oz mark.

“The TSX continues to outperform the S&P 500 this year, but it is not immune to what is going on south of the border,” said Angelo Kourkafas, investment strategist at Edward Jones Investments.

The Canadian market tracked a decline in Wall Street’s main indexes, as the Trump administration’s statement about considering options to fire Powell, a day after Trump’s criticism, fueled concerns about the central bank’s autonomy. [.N]

Canadian government 10-year bond yields rose 5.1 basis points to 3.188%, also tracking its U.S. counterpart.

In Canada, nine of the 11 major sectors traded in the red.

The healthcare sector led losses with a 4% fall. Pharmaceutical firm Bausch Health fell 8%. The heavy-weight energy stocks dropped more than 1% as oil prices fell after nuclear talks between the U.S. and Iran showed progress.

Canadian retail sales data later this week will offer insights into consumer spending patterns amid the trade war.

This is also the final week of campaigning before Canada’s election on April 28, with Prime Minister Mark Carney pledging a new economic order that is less reliant on the U.S.

(Reporting by Ragini Mathur in Bengaluru and Divya Rajagopal in Toronto; Editing by Leroy Leo and Matthew Lewis)