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TSX Ends Notably Lower On Trade War Concerns

A day after global markets crashed amid escalating tensions on U.S.-China trade issues, Canadian stocks tumbled on Tuesday as investors, returning to the market after an extended weekend, pressed sales almost across the board.

U.S. stocks rebounded from Monday's losses, European stocks showed some strength early on in the session, but it was a day out in the negative terrain for the Canadian market today.

Energy, consumer discretionary and financial stocks declined sharply. Industrial and information technology stocks too reeled under pressure. But for some strong buying in the mining space, the market would have seen a steeper slide.

The benchmark S&P/TSX Composite Index, which opened with a big negative gap at 16,111.00, ended down 122.17 points, or 0.75%, at 16,149.49, more than 50 points off the day's low of 15,994.28. The index touched a high of 16,188.24 in the session.

The Capped Energy Index shed as much as 2.61%. Seven Generations Energy (VII.TO) declined 8.7%. Vermilion Energy (VET.TO), Precision Drilling (PD.TO), Encana Corp. (ECA.TO), ARC Resources (ARX.TO), Enerplus Corp. (ERF.TO), Enerflex (EFX.TO), PrairieSky Royalty (PSK.TO), Crescent Point Energy (CPG.TO) and Husky Energy (HSE.TO) lost 4 to 7%.

Tourmaline Oil Corp. (TOU.TO), Cenovus Energy (CVE.TO), Imperial Oil (IMO.TO) and Parex Resources (PXT.TO) also declined sharply.

The Capped Consumer Discretionary Index lost 1.61%. Canada Goose Holdings (GOOS.TO), Linamar Corp. (LNR.TO), Gildan Activewear (GIL.TO), Martinrea International (MRE.TO), Great Canadian Gaming Corp. (GC.TO), Canadian Tire Corporation (CTC.A.TO) and Brp Inc. (DOO.TO) ended lower by 2 to 4%.

In the financial section, Manulife Financial (MFC.TO), Fairfax Financial Holdings (FFH.TO), Canadian Imperial Bank of Commerce (CM.TO), Bank of Montreal (BMO.TO), Bank of Nova Scotia (BNS.TO), Royal Bank of Canada (RY.TO) and Toronto-Dominion Bank (TD.TO) lost 1 to 2.5%.

Among the stocks in the materials space, Yamana Gold (YRI.TO) rallied more than 9%. Kirkland Lake Gold (KL.TO), B2Gold Corp. (BTO.TO), Kinross Gold Corp. (K.TO), Sandstorm Gold (SSL.TO), Eldorado Gold (ELD.TO), Agnico Eagle Mines (AEM.TO), Iamgold (IMG.TO), Barrick Gold Corp. (ABX.TO), Detour Gold Corp. (DGC.TO), Novagold (NG.TO) and Alamos Gold (AGI.TO) gained 3.4 to 7%.

Pan American Silver (PAAS.TO), Ssr Mining (SSRM.TO), First Majestic Silver Corp. (FR.TO) and MAG Silver (MAG.TO) also ended with strong gains.

On Wall Street, stocks rebounded fairly strongly following the sell-off seen in the previous session. The gains were more due to bargain hunting.

The Dow ended 1.2% up, the Nasdaq soared 1.4% and the S&P 500 ended 1.3% up.

Markets across the Asia-Pacific region and Europe closed mostly lower on trade war jitters.

In commodities, West Texas Intermediate crude oil futures for September faltered after a positive start and ended lower by $1.06, or 1.9%, at $53.63 a barrel.

Gold futures for December ended up $7.70, or 0.5%, at $1,484.20 an ounce.

Silver futures for September ended up $0.052, or 0.3%, at $16.445 an ounce, while Copper futures for September settled at $2.5575 per pound, gaining $0.0135, or about 0.5% for the session.

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