Toronto stocks fall as mining, energy weigh; index set for weekly gain
Updated at 10:02 a.m. ET/ 1502 GMT
By Nikhil Sharma
Nov 8 (Reuters) -Canada's main stock index slipped on Friday, hurt by mining and energy shares, while domestic jobs data slightly trimmed bets for a hefty 50-basis-point interest rate cut by the Bank of Canada next month.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 118.73 points, or 0.48%, at 24,727.2, but was set to log weekly gains, broadly benefiting from Donald Trump's reelection and his proposals for tax cuts and looser regulations on corporations.
However, his planned 10% tariff on all imports could have serious implications for Canada, the world's No. 4 crude oil producer.
Canada's materials sector .GSPTTMT fell 1.8% as gold prices dropped and heading for their worst week in over five months, strained by the strong dollar amid market uncertainty about Trump's victory's impact on the U.S. rate cut trajectory. GOL/
Lower copper prices also weighed on the sector as China's latest fiscal stimulus disappointed investors. MET/L
The energy sector .SPTTEN fell 1.3%, tracking oil prices as concerns eased over Hurricane Rafael's impact on the U.S. Gulf's oil and gas infrastructure. O/R
"The Canadian markets and the US markets are at all-time highs. So I don't think a small pullback today is of any concern," said Michael Constantino, chief executive officer at Webull Canada.
Canada added lower-than-expected 14,500 jobs in October, while wages of permanent employees rose. The unemployment rate stayed unchanged from September but hovered around a 34-month high of 6.5%.
Traders see a 58.7% chance of a 50-bps cut at the Bank of Canada's December policy meeting, slightly below the 64% likelihood seen before the data. 0#BOCWATCH
The bank slashed rates by half a percentage point last month in a bid to boost economic growth.
BoC's peer, the U.S. Federal Reserve, cut rates by 25 basis points on Thursday.
The biggest gainer on the index, Mattr MATR.TO, jumped 15.8% after the material technology company agreed to buy power cable producer AmerCable from France-based Nexans NEXS.PA for $280 million.
Reporting by Nikhil Sharma in Bengaluru; Editing by Vijay Kishore
Related Assets
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.
