Toronto stocks slip due to losses in energy; BoC meeting in focus

By Nikhil Sharma

(Reuters) -Canada’s main stock index fell on Tuesday as losses in crude prices weighed on energy-linked stocks, while investors awaited the Bank of Canada’s (BoC) monetary policy decision later in the week.

At 10:22 a.m. ET (1422 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 52.49 points, or 0.23%, at 22,821.38.

All eyes are on the Canadian central bank’s policy meeting on Wednesday, and given the momentum provided by last week’s benign inflation and retail sales numbers, the chances of an interest rate cut seem highly likely.

Money markets see a 90.1% probability of a 25-basis-point rate cut on July 24 and are also pricing in another rate cut later this year.

“They (the BOC) may do the same as the Europeans (ECB) did and pause following a rate cut and then leave the door open for more interest rate cuts later in the year,” Colin Cieszynski, chief market strategist at SIA Wealth Management.

Leading the sectoral losses was the energy sector that fell 1.1%, as it tracked losses in oil prices due to growing possibilities of a ceasefire in Gaza weighing on the commodity. [O/R]

The materials sector, fell 0.5% as extended its seventh consecutive session of losses to a three and a half month low due to softer demand concerns from China. [MET/L].

On Wall Street, the main indexes were subdued as investors awaited earnings from megacap companies Alphabet (NASDAQ:) and Tesla (NASDAQ:) later in the day. [.N]

Among individual stocks, Canfor (TSX:) Corporation shares fell 3.4% after forest products company said CEO Don Kayne would retire by the year-end.