TSX down for sixth day as higher bond yields weigh
Updates with market open prices
By Ragini Mathur
Dec 19 (Reuters) -Canada's main stock index fell for the sixth straight session on Thursday, as rising bond yields weighed on economically sensitive sectors such as industrials and real estate.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE fell 0.5% to 24,444.47 points, trading near a six-week low.
The declines came even as Wall Street attempted a rebound from sharp losses on Wednesday, when the U.S. Federal Reserve cut rates as expected, but Chair Jerome Powell said more reductions in borrowing costs hinge on further progress in lowering stubbornly high inflation.
Crude oil CLc1, LCOc1 and silver prices XAG= came under pressure for a second day.
"A strong U.S. dollar is not good for commodities. It is not a good thing for our commodities-based economy," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
The policy announcement showed heightened uncertainty ahead of Donald Trump entering the White House.
Although Trump may have been just at the periphery of officials' thinking at the Fed, he was a central focus in Ottawa when Canadian Finance Minister Chrystia Freeland quit after clashing with Prime Minister Justin Trudeau on how to handle possible U.S. tariffs under the next U.S. administration.
The Bank of Canada lowered interest rates last week and is expected to ease further in 2025 amid a weakening outlook.
The domestic retail sales data for November, due on Friday, could give further clues about the economy's health.
"If it's a good number, they (investors) will take it with a grain of salt. If it's a negative number, it'll just be another negative data point to tell us that the Canadian economy is stagnant," Small said.
Industrial stocks .GSPTTIN fell 1%, while real estate .GSPTTRE dropped 0.7%, as the prospect of fewer U.S. rate cuts supported U.S. and Canadian bond yields.
Canada's 10-year Treasury yield CA10YT=RR touched a more than three-week high at 3.329%.
Company-wise, Vermilion Energy VET.TO rose 4.1% after the oil and gas firm forecast 2025 free cash flow above analysts' estimates.
Reporting by Ragini Mathur in Bengaluru; Editing by Shilpi Majumdar
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
