TSX at four-week low as political turmoil weighs
Updates to market open prices
By Ragini Mathur
Dec 17 (Reuters) -Canada's main stock index fell on Tuesday, weighed down by energy and materials stocks, as the country'spolitical turmoil turned investorsrisk averse.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE fell 0.3% to 25,069.93 points - a near four-week low.
Political worries inCanada escalated following the minority Liberal government's loss in a British Columbia special election, further complicating the situation for Prime Minister Justin Trudeau.
This comes in the wake of the unforeseen resignation of Finance Minister Chrystia Freeland on Monday.
"There's a lot of turmoil in Canada right now," said Shiraz Ahmed, senior portfolio manager and founder of Sartorial Wealth at Raymond James.
"On top of that, the Bank of Canada's super-sized rate cut is not showing very positive signs for the economy as a whole. Overall, there seems to be a bit of unrest in the market."
Canada's annual inflation rate unexpectedly slowed by a tick to 1.9% in November, due to a general slowdown in prices, with the consumer price index remaining steady on a monthly basis.
The data was the first of two inflation reports that the Bank of Canada will get to assess before its next rate decision on Jan. 29. The central bank has cut interest rates by 50 basis points at each of its last two policy announcements.
Heavyweightenergy stocks.SPTTEN fell themost, down 3.3%, after oil prices dipped as Chinese economic data renewed demand concerns. O/R
Materials stocks .GSPTTMT were also down as gold slipped under pressure from a strengthening U.S. dollar and climbing Treasury yields. GOL/
South of the border, U.S. retail sales increased more than expected in November amid an acceleration in motor vehicle purchases.
All eyes will be on the Fed'spolicy decision on Wednesday, when policymakers areexpected to cut rates by 25 basis points, a thirdreduction in borrowing costs since the U.S. central bank embarked on its easing cycle in September.
Reporting by Ragini Mathur in Bengaluru; Editing by Mohammed Safi Shamsi
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