Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

CANADA STOCKS-TSX drops on interest rate hike

Published 2018-10-24, 10:36 a/m
© Reuters.  CANADA STOCKS-TSX drops on interest rate hike
XAU/USD
-
GC
-
LCO
-
CL
-
GSPTSE
-
BBDb
-
OGC
-
TCW
-
SPTTFS
-
GSPTTMT
-
SPTTEN
-
NGD
-
CNI
-
KRR
-
QSR
-
ACB
-

Oct 24(Reuters) - Canada's main stock index fell on Wednesday on weak investor sentiment after Bank of Canada raised benchmark interest rate.

* At 10:01 a.m. ET (14:01 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 62.2 points, or 0.41 percent, at 15,222.97.

*The rate increase, by a quarter of a percentage point, took the bank's overnight interest rate to 1.75 percent, still well below the "neutral" rate of 2.5-3.5 percent.

* The central bank, which so far lifted rates five times since July 2017, tweaked its standard language on future hikes, dropping previous references to the gradual pace of tightening. The central bank also warned that an increasing trade war between U.S. and China could become a major drag on global economic growth.

* Trade uncertainty in North America, which the bank had previously flagged as a major risk to the economic outlook, would diminish after the United States, Canada and Mexico agreed a revamped NAFTA deal. Nine of the index's 11 major sectors were lower, led by a 1 percent drop in the heavyweight financials sector .SPTTFS after the rate decision.

* Canadian National Railway CNR.TO shares rose 2.7 percent after the railroad reported a better-than-expected quarterly profit as the company shipped higher volumes of crude and grains. Shares of Restaurant Brands QSR.TO was flat after its quarterly profit missed Wall Street estimates as its Burger King unit struggled in a fiercely competitive U.S. market, offsetting gains in its Tim Hortons cafes. The energy sector .SPTTEN climbed 0.2 percent as U.S. crude CLc1 prices were up 1.0 percent per barrel, while Brent crude LCOc1 added 0.4 percent. O/R

* The materials sector .GSPTTMT , which includes precious and base metals miners and fertilizer companies, lost 0.2 percent as gold futures GCc1 dropped 0.2 percent to $1,231.5 an ounce. GOL/ MET/L

* The largest percentage gainers on the TSX were Trican Well Service TCW.TO , which jumped 2.9 percent, followed by shares of Canadian National Railway CNR.TO .

* OceanaGold Corp OGC.TO fell 2.5 percent, the most on the TSX. The second biggest decliner was New Gold NGD.TO down 2.0 percent.

* The most heavily traded shares by volume were Aurora Cannabis ACB.TO , Royal Nickel RNX.TO , and Bombardier B BBDb.TO .

* On the TSX, 143 issues were higher, while 88 issues declined for a 1.63-to-1 ratio favouring gainers, with traded volumes touching 16.51 million shares.

* The TSX posted no new 52-week high and one new low.

* Across all Canadian issues, there were one new 52-week highs and 17 new lows, with total volume of 27.15 million shares.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.