By Ketki Saxena
At the close in Toronto, the S&P/TSX Composite Index was at 20,729.34 points, down 0.91% in the day’s trading.
Canada’s benchmark index tracked U.S. and global equities lower following hawkish remarks from Fed Governor Christopher Waller yesterday, noting the advisability of a half percentage point at every FOMC meeting going forwards, until inflation is well under control.
A 50 basis point rate hike is also expected from the Bank of Canada tomorrow, which would raise the BoC’s policy rate to 1.5%. The likelihood of tomorrow’s hike also appeared to be confirmed by today’s GDP data (+3.1%), which was largely in line with central bank expectations (+3.0%).
Canada’s commodity heavy benchmark index was also weighed down by crude. Crude oil rapidly reversed earlier gains following news that OPEC+ may exclude Russia from its oil production targets, thereby paving the way for other members of the cartel to significantly increase production as Western nations have implored the bloc to do.
The index was also weighed down by broad based losses in metals including gold, as demand for bullion fell due to rising yields and a strengthening dollar.
ARC Resources Ltd . (TSX:ARX) (-2.61%), Manulife Financial (TSX:MFC) (+0.09%), and Ballard (TSX:BLDP) (-9.49%) were amongst the most traded stocks on the TSX today.
Canopy Growth (TSX:WEED) (+4.63%), Nutrien (TSX:NTR), (+3.53%), and Martinrea (TSX:MRE) (+3.03%) were amongst the top gainers on the TSX today, while Lithium Americas (TSX:LAC) (-14.57%), Ballard, and Hut 8 Mining (TSX:HUT) (-8.15%) were the biggest losers.
In New York, the S&P 500 was down 0.53%, the Dow Jones was 0.67%, and the Nasdaq was 0.41% lower at the close.
In Bonds and Currencies: Both U.S. and Canadian yields surged on the prospect of monetary tightening more aggressive than last week’s Fed minutes suggested. Yields on the Canadian 5 year were at 2.757%, while yields on the 10 year reached 2.914%. Yields on the 10 year U.S. treasury were at 2.859%.
The USD/CAD pair was down 0.04% at C$1.2651 to a greenback.