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TSX Ends Lower On Trade Worries

The Canadian stock market ended lower on Friday, snapping a three-day winning streak, as trade related worries forced investors to stay cautious and refrain from making significant moves.

Stocks drifted lower early on in the session amid an escalation in U.S.-China trade tensions following the U.S. government's decision to block Huawei from accessing U.S. technology and the subsequent attack by the Chinese government and media on the Trump administration's lack of intent in solving the dispute.

A recovery followed after the U.S. officially stated that it would delay imposing tariffs on car imports from European countries, but that proved short lived.

The benchmark S&P/TSX Composite Index ended down 42.11 points, or 0.26%, at 16,401.75. The index, which fell to a low of 16,376.81 early on in the session, rose to 16,456.09 by mid morning, but faltered and stayed weak thereafter.

On Thursday, the TSX ended up 125.72 points, or 0.77%, at 16,443.86.

Losses in energy and healthcare sections dragged the market down. The Capped Energy Index shed 1.62% and the Healthcare Index declined by 1.27%.

Shares from all other sectors turned in a mixed performance.

Aurora Cannabis (ACB.TO), Manulife Financial Corporation (MFC.TO), Encana Corporation (ECA.TO), Crescent Point Energy (CPG.TO), Cenovus Energy (CVE.TO), Canadian Natural Resources (CNQ.TO) and Canopy Growth Corporation (WEED.TO) declined 1 to 2.3%.

Hexo Corp. (HEXO.TO), MEG Energy Corp. (MEG.TO) and Baytex Energy Corp. (BTE.TO) shed 3.3 to 4%.

Enbridge Inc. (ENB.TO), TC Energy Corporation (TRP.TO) and Air Canada (AC.TO) ended notably higher.

CAE Inc. (CAE.TO) gained nearly 15% after the company said that its fourth quarter net income attributable to equity holders was $122.3 million ($0.46 per share) compared to $82.3 million ($0.31 per share) last year.

In other markets, U.S. stocks ended notably lower after a highly volatile session. After initial weakness, the market staged a smart recovery but declined again as trade worries persisted.

A report from the University of Michigan that showed an improvement in consumer sentiment in May lifted sentiment and pulled the market out from lower levels.

However, investors were reluctant to hold positions due to trade worries. Stocks faltered following a report in CNBC indicating negotiations between the U.S. and China appear to have stalled.

The Dow ended down 0.4%, the Nasdaq declined 1% and the S&P 500 finished lower by 0.6%.

European markets ended mostly lower, while Asian markets turned in a mixed performance.

In commodities, West Texas Intermediate Crude oil futures for June ended down $0.11, or 0.17%, at $62.76 a barrel, after rising to a high of $63.64 earlier in the session.

Gold futures for June ended down $10.50, or 0.8%, at $1,275.70 an ounce, the lowest settlement price since May 2.

On Thursday, gold futures for June ended down $11.60, or 0.9%, at $1,286.20 an ounce. Gold futures shed about 0.9% in the week.

Silver futures for July ended down $0.151, at $14.388 an ounce, while Copper futures for July settled lower by $0.0095, at $2.7385 per pound.

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