TSX, Wall Street pulls back as Trump rally begins to run out of steam.

 

Stock markets in New York and Toronto recouped marginally from late morning loses yet at the same time closed fundamentally lower on Monday, a pullback from a weeks-in length rally incited by the administration of Donald Trump.

The S&P/TSX composite index in Toronto closed down 170.69 points, 1.1 per cent its most exceedingly bad day since the middle of December.

“Global markets have a negative risk bias this morning with most of it focused upon equities,” Scotiabank said in a note to clients. “Canadian markets will just follow the global tone this morning and for much of the week.”

The U.S. president plot his immigration policy on Friday by means of an official order to temporarily ban visitors coming to the U.S. from Syria, Iraq, Iran and four other countries on the grounds of national security.

That was terrible news for pretty much every worldwide stock market, as the ramifications of isolationism from the world’s largest economy spread far and wide.

“Last week’s enthusiasm in financial markets fizzled over the weekend, as the U.S. travel ban incited worries — and confusion — around the world,” BMO economist Jennifer Lee said.

Each of the 10 of the index’s 10 main groups were lower on Monday. Lower oil prices pulled down the TSX energy sub-index by 2.07 per cent.

The Canadian dollar increased 0.10 of a U.S. cent to close at 76.22 cents US.

The Dow Jones industrial average had split through the 20,000-point barrier interestingly a week ago, however it closed down 122 points on Monday.

The S&P 500 closed down 13 points, and the technology-heavy Nasdaq index lost 47 points.

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