TSX, Wall Street end lower as Turkey woes hit banks


TSX, Wall Street end lower as Turkey woes hit banks

Global stocks fell Friday, the euro declined and investors moved into the dollar amid fears that ongoing financial instability in Turkey will impact other markets.

In small-caps, the Russell 2000 closed at 1,686.75 for a loss of -4.14 points or -0.24%. Occidental Petroleum OXY.N fell 4.2 percent after it maintained a tepid production forecast for the year.

The Turkish lira briefly dropped almost 20 percent against the dollar after US President Donald Trump tweeted that he has authorized the doubling of tariffs on steel and aluminum imports from Turkey.

"There is low volatility in the markets as the S&P and Nasdaq are just below all-time record highs, and it seems like markets are complacent right now", said Tom White, chief market strategist at TradeWise Advisors, in Chicago, Illinois. "You worry about the collateral damage".

Energy weighs on the S&P 500 on Thursday.

The S&P financial index fell 1.4 percent, among the biggest drags on the S&P 500.

Brent crude futures fell 8 cents to $72.20 a barrel and US crude futures were down 2 cents at $66.92 a barrel.

The S&P 500 plunged 20.30 points, or 0.7 per cent, to 2,833.28. The Nasdaq gained 0.3 per cent for the week after strong gains in some technology shares.

Shares in leading USA banks also plunged significantly with Bank of America, Goldman Sachs, Morgan Stanley, and J.P. Morgan Chase all falling over one percent.

"Any time that there's any movement in currencies, financials tend to reap the contagion risks", said Jamie Cox, managing partner for Harris Financial Group in Richmond, Virginia.

Data on Friday showed US consumer prices rose in July and the underlying trend continued to strengthen, pointing to a steady increase in inflation pressures.

Declining issues outnumbered advancers for a 2.34-to-1 ratio on the NYSE. The tech-heavy NASDAQ was also 0.6 percent lower, ending at 7,839.

Oil prices were down slightly as the escalating China-U.S. trade dispute cast doubt on the outlook for crude demand.