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At Midday: TSX Gives Up Morning's Gains, Remains in Correction Territory

Published 2022-06-14, 12:27 p/m
© Reuters

By Ketki Saxena

Investing.com -- At 12:45 p.m in Toronto, the S&P/TSX Composite Index was at 19,562.64 points, down -0.93% in the day’s trading as investors await tomorrow’s Fed policy decision. Markets expect a 50 or possibly 75 basis point hike, following last week’s hotter-than-expected CPI reading.

Canada’s benchmark index reversed gains from this morning and remains in correction territory, confirmed when an index closes 10% below its record closing high. The TSX closed the day yesterday at 19,742.56 points, down 10.6% from its all-time closing high in March.

On Wall Street, the S&P500 extended declines after yesterday confirming a bear market, defined as a 20% decline below the all-time closing high.

Today’s Canadian manufacturing sales data also reinforces the case for aggressive rate hikes from the Bank of Canada in July. Today’s data shows manufacturing levels at above pre-pandemic levels, another indicator of the Canadian economy’s near full recovery from Covid-19 measures.

All TSX sectors barring healthcare and consumer discretionary were in the red at midday,

Pot stocks Aurora Cannabis (TSX:ACB) (+7.91%), Tilray (TSX:TLRY) (+4.71%), and Canopy Growth (TSX:WEED) (+3.32%) were amongst the biggest gainers on the TSX today. Nutrien (TSX:NTR) (+4.48%) and LifeWorks Inc (TSX:LWRK) (+4.20%) were also amongst today’s top performers.

The biggest losers on the TSX today included Bombardier (TSX:BBDb) (-13.81%), NexGen Energy Ltd. (TSX:NXE) (-5.67%), Birchcliff Energy Ltd . (TSX:BIR)(-5.66%), Air Canada (TSX:AC)(-5.39%), and Lion Electric Corp (TSX:LEV) (-4.52%).

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