Economic news

TSX falls by most in 3 months, C$ slides as oil rout weighs

2022.09.23 17:33

[ad_1]


© Reuters. The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019. REUTERS/Chris Helgren

By Fergal Smith

TORONTO (Reuters) – Canada’s resource-heavy main stock index posted its biggest decline in more than three months on Friday and the Canadian dollar extended its recent decline as oil prices tumbled and investors grew more worried about the global economic outlook.

The Toronto Stock Exchange’s S&P/TSX composite index ended down 521.70 points, or 2.8%, at 18,480.98, its biggest decline since June 16 and its lowest closing level in more than two months.

Wall Street’s main indexes also closed sharply lower but not as much as the Toronto market.[.N/C]

For the week, the TSX lost 4.7% as worries about the economic impact of central bank tightening overshadowed domestic data showing an easing of inflation pressures. The index has fallen about 16% from its record closing high in March.

“It’s the realization that we are seeing a general slowdown in the global economy,” said Philip Petursson, chief investment strategist at IG Wealth Management. “That’s working its way into softer commodity prices.”

Oil prices settled down 5.7% at $78.74 a barrel, an eight-month low, as the U.S. dollar notched its strongest level in more than two decades, while and gold prices fell.

The Toronto market’s energy group tumbled 7.8%, while the materials group, which includes precious and base metals miners and fertilizer companies, was down 4.5%. Together, those two groups account for nearly 30% of the TSX’s weighting.

Domestic data showed that retail sales fell 2.5% in July, which was more than expected, indicating interest rate increases by the Bank of Canada are slowing consumer spending.

That added to pressure on the Canadian dollar. It was down 0.7% at 1.3580 to the greenback, or 73.64 U.S. cents, after touching its weakest intraday level since July 2020 at 1.3612.

Meanwhile, Canadian bond yields eased across much of a flatter curve. The 10-year was down 4.8 basis points at 3.080%, unraveling some of the upswing since June.

That move higher for yields in recent weeks could make bonds “an attractive opportunity over the course of the next 12 to 36 months,” Petursson said. “While yields can continue to move up you are seeing a coupon that will at least absorb some of that.”

[ad_2]

Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 85,686.96 1.44%
ethereum
Ethereum (ETH) $ 1,645.63 1.09%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.15 1.27%
bnb
BNB (BNB) $ 589.74 0.00%
solana
Solana (SOL) $ 131.54 0.38%
usd-coin
USDC (USDC) $ 1.00 0.00%
tron
TRON (TRX) $ 0.251441 1.90%
dogecoin
Dogecoin (DOGE) $ 0.160022 2.38%
cardano
Cardano (ADA) $ 0.644699 0.94%
staked-ether
Lido Staked Ether (STETH) $ 1,644.67 1.09%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 85,533.92 1.35%
leo-token
LEO Token (LEO) $ 9.43 0.48%
avalanche-2
Avalanche (AVAX) $ 20.03 0.09%
chainlink
Chainlink (LINK) $ 12.73 0.39%
stellar
Stellar (XLM) $ 0.241356 0.37%
the-open-network
Toncoin (TON) $ 2.96 4.85%
usds
USDS (USDS) $ 1.00 0.01%
sui
Sui (SUI) $ 2.20 1.98%
shiba-inu
Shiba Inu (SHIB) $ 0.000012 1.31%
hedera-hashgraph
Hedera (HBAR) $ 0.166631 0.12%
wrapped-steth
Wrapped stETH (WSTETH) $ 1,972.63 1.24%
bitcoin-cash
Bitcoin Cash (BCH) $ 335.61 1.71%
litecoin
Litecoin (LTC) $ 78.31 0.75%
polkadot
Polkadot (DOT) $ 3.70 1.22%
hyperliquid
Hyperliquid (HYPE) $ 16.36 2.34%
bitget-token
Bitget Token (BGB) $ 4.35 2.43%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.07%
pi-network
Pi Network (PI) $ 0.743653 1.30%
ethena-usde
Ethena USDe (USDE) $ 0.99943 0.03%
weth
WETH (WETH) $ 1,644.87 1.24%
whitebit
WhiteBIT Coin (WBT) $ 27.89 0.29%
monero
Monero (XMR) $ 212.62 2.39%
wrapped-eeth
Wrapped eETH (WEETH) $ 1,751.72 1.22%
uniswap
Uniswap (UNI) $ 5.42 0.03%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 85,708.96 1.49%
dai
Dai (DAI) $ 1.00 0.02%
okb
OKB (OKB) $ 52.27 1.38%
pepe
Pepe (PEPE) $ 0.000007 0.19%
aptos
Aptos (APT) $ 4.74 2.28%
gatechain-token
Gate (GT) $ 22.55 0.10%
ondo-finance
Ondo (ONDO) $ 0.876332 1.09%
tokenize-xchange
Tokenize Xchange (TKX) $ 33.80 0.13%
near
NEAR Protocol (NEAR) $ 2.12 0.04%
susds
sUSDS (SUSDS) $ 1.05 0.04%
blackrock-usd-institutional-digital-liquidity-fund
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) $ 1.00 0.00%
internet-computer
Internet Computer (ICP) $ 4.95 0.20%
crypto-com-chain
Cronos (CRO) $ 0.085781 0.33%
mantle
Mantle (MNT) $ 0.696273 0.32%
ethereum-classic
Ethereum Classic (ETC) $ 15.31 0.03%