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At Close: TSX Hits One Month Low on Fed Fears, Falling Oil Prices

Published 2022-09-06, 04:52 p/m
© Reuters.

By Ketki Saxena 

Investing.com -- At the close in Toronto, the S&P/TSX Composite was at 19,088.27 points, down 0.95% in the day’s trading to hit a new 1-month low tracking U.S. equities lower following better-than-expected services reading that reinforced the case for another outsized hike from the Fed later this month. 

The ISM services index increased to 56.9 from 56.7, above the consensus of 55.1, and raising the case for a 75-basis-point hike from the Fed. Following the data, bets for a 75 bps move from the Fed climbed to 75%, up from 63%, according to Investing.com’s Fed Rate Monitor Tool.

The commodity-heavy Canadian index was also pressured by falling crude prices following an announcement by OPEC+ yesterday that it will cut its October output by 100,000 barrels per day (bpd). 

Oil prices are also being pressured by worries of rate-hike-driven demand destruction, continuing lockdowns in Chengdu in China, and a strong dollar

The session's biggest gainers on the S&P/TSX Composite were Pason Systems (TSX:PSI) Inc . which rose 3.14% or 0.42 points to trade at 13.78 at the close. Capstone Mining Corp (TSX:CS) added 3.09% or 0.09 points to end at 3.00 and Aecon Group Inc . was up 2.45% or 0.26 points to 10.89 in late trade.

Biggest losers included Aurora Cannabis Inc (TSX:ACB) , which lost 8.12% or 0.16 points to trade at 1.81 in late trade. Tilray (TSX:TLRY) Inc  declined 5.87% or 0.26 points to end at 4.17 and New Gold Inc  shed 5.75% or 0.05 points to 0.82.

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