Home » TSX down tracking our global mood, inflation data

TSX down tracking our global mood, inflation data

Article content

Canada’s main stock index fell on Wednesday as global sentiment soured on concerns about slowing economic growth and rising consumer prices, with data showing higher-than-expected domestic inflation.

At 9:44 a.m. ET (13:44 GMT), the Toronto Stock Exchange’s composite S&P/TSX index fell 161.02 points, or 0.79%, at 20,329.99, marking it to break its three-day winning streak.

Cyclical stocks and technology stocks, which fell 2.3% and 1.4% respectively, resulted in losses.

Canada’s year-on-year inflation accelerated again in April, ahead of analyst expectations, driven largely by rising food and shelter prices, data from Statistics Canada shows.

Article content

“The headline number was a little stronger than we expected, but the surprise was that core inflation is now about 4.2% yoy, so that’s a pretty significant increase from where it was in March,” Robert Both said, macro strategist at TD securities.

Markets expect Canada’s central bank to continue raising interest rates by half a percentage point during its next two policy meetings in June and July, following a similar hike last month, the largest rise in 22 years.

The energy sector fell 0.2% even as oil prices rose on expectations that easing COVID-19 restrictions in China will boost demand.

Financial stocks fell 1.0%, while industrial stocks fell 0.7%.

The materials sector, which includes precious and base metals miners and fertilizer companies, lost 1.2% as gold futures fell 0.4% to $1,810.4 an ounce.

Economically, Canadian house price growth accelerated again in April, with annual price increases breaking last year’s record, index data showed.


The TSX posted eight new highs in 52 weeks and no new lows.

Across all Canadian issues, there were 20 new 52-week highs and 32 new lows, totaling 33.92 million shares. (Reporting by Amal S in Bengaluru; additional reporting by Steve Scherer and Nichola Saminather)

This post TSX down tracking our global mood, inflation data

was original published at “https://financialpost.com/pmn/business-pmn/tsx-down-tracking-dour-global-mood-inflation-data”

About the author


Add Comment

Click here to post a comment

Your email address will not be published.