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TSX Ends Lower On Growth Concerns

The Canadian stock market ended notably lower on Tuesday, with investors largely staying wary of picking up shares amid concerns about global economic growth.

The International Monetary Fund slashed the global growth forecast for this year and next, citing an increase in the likelihood of further negative shocks, such as a full-blown trade war.

In economic news from Canada, data released by Canada Mortgage and Housing Corp. showed that Canadian housing starts came in at a seasonally adjusted rate of 188,683 units in September. Economists had expected a rate of 210,000 units.

Despite higher commodity prices, energy stocks turned in a mixed performance. Materials stocks were mostly weak. Information technology and consumer discretionary stocks were among the other prominent losers. Financial and telecom stocks too traded weak, while healthcare stocks advanced.

The S&P/TSX Composite Index ended down 92.12 points, or 0.58%, at 15,854.05, slightly off the day's low. The index touched a high of 15,917.82 in the session. On Friday, the benchmark S&P/TSX Composite Index ended down 60.50 points, or 0.38%, at 15,946.17, after scaling a high of 16,028.04 and a low of 15,895.50 intraday. The market was closed on Monday for Thanksgiving Day holiday.

The Capped Materials Index shed 1.47%. Franco-Nevada Corporation (FNV.TO) declined by 2.6% and Agnico Eagle Mines (AEM.TO) ended lower by about 4.1%. Barrick Gold Corporation (ABX.TO), Teck Resources (TECK.B.TO), Methanex Corporation (MX.TO) and CCL Industries Inc. (CCL.B.TO) lost 1 to 2%, while Wheaton Precious Metals Corp. (WPM.TO) gained 1.2%.

Among energy stocks, Canadian Natural Resources (CNQ.TO) declined by 2.4%, Encana Corporation (ECA.TO) ended lower by 1.4% and Cenovus Energy Inc. (CVE.TO) ended 1.5% down, Meanwhile, Imperial Oil (IM.TO) added 1.25%, Tourmaline Oil Corp. (TOU.TO) gained about 3.5% and ARC Resources (ARX.TO) climbed up 4%.

In the banking space, Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO), Bank of Nova Scotia (BNS.TO), Canadian Imperial Bank Of Commerce (CM.TO) and National Bank of Canada (NA.TO) lost 0.3 to 1%, while Bank of Montreal (BMO.TO) ended flat.

The Information Technology Index ended nearly 2.5% down. Kinaxis Inc. (KXS.TO) lost more than 5% and Celestica Inc. (CLS.TO) ended 4.1% down. CGI Group Inc. (GIB.A.TO), Constellation Software Inc. (CSU.TO), Shopify Inc. (SHOP.TO), Open Text Corporation (OTEX.TO) and BlackBerry (BB.TO) declined by 1 to 4%.

The Capped Consumer Discretionary Index lost about 1.4%. Canada Goose Holdings Inc. (GOOS.TO) declined by 6.7%. Magna International Inc. (MG.TO), Dollarama Inc. (DOL.TO) and Linamar Corporation (LNR.TO) also declined sharply.

Among telecom stocks, BCE Inc. (BCE.TO) and TELUS Corporation ended notably lower, while Cineplex Inc. (CGX.TO) gained about 2.1%.

In its latest World Economic Outlook, the IMF forecast 3.7% growth for the world economy for this year and next, lower than the 3.9% growth predicted in the April report and in a July update. "Downside risks to global growth have risen in the past six months and the potential for upside surprises has receded," the global lender said in the report.

"Escalating trade tensions and the potential shift away from a multilateral, rules-based trading system are key threats to the global outlook," the report noted.

The IMF cautioned that an intensification of trade tensions, and the associated rise in policy uncertainty, could dent business and financial market sentiment, trigger financial market volatility, and slow investment and trade.

Asian stocks ended mostly lower on Tuesday as investors fretted about the impact of rising interest rates, U.S.-China tensions and Italy's decision to expand budget deficits. The International Monetary Fund has lowered its forecast for Chinese economic growth in 2019 to 6.2% from 6.4%, citing the "negative effect of recent tariff actions".

European markets bounced back after a fall from higher levels. The early weakness was due to concerns over Italy, Brexit and rising bond yields.

In the U.S. market, stocks fluctuated over the course of the trading day on Tuesday, extending the volatile performance seen in the previous session. While the tech-heavy Nasdaq inched up 2.07 points, the Dow dipped 56.21 points and the S&P 500 edged down 4.09 points.

In commodities, crude oil futures for November delivery ended up $0.67, or 0.9%, at $74.96 a barrel.

Gold futures for December ended up $2.90, or 0.2%, at $1,191.50 an ounce, after having plunged 1.4% to Monday.

Silver futures for December settled at $14.400 an ounce, gaining $0.071 for the session.

Copper futures for December ended up $0.0395, at $2.8065 per pound.

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