By Ketki Saxena
Investing.com – As of 11:55 p.m ET, the S&P/TSX Composite Index was at 21,787.63 points, down 143.20 points or 0.65% in the day’s trading so far.
North American indices are trending lower today as investors await minutes of the Fed’s March meeting today, which will indicate how quickly and aggressively the Federal Reserve will hike rates. The minutes are expected at 2:00 p.m ET today.
Equity markets, particularly growth sectors typically have a negative reaction to rising rates and the corresponding surge in bond yields. Investor sentiment is also being hampered by another escalation in the Russia-Ukraine crisis after reports of mass-civilian deaths have the EU considering a fresh round of sanctions on the Kremlin.
Toronto’s benchmark index was led lower by Tech (-4.06%), the sector that tends to be hardest hit by rising rates, which affect deep discounts on valuations and price returns of growth stocks.
Financials (-0.65%), typically a beneficiary of rising interest rates were also lower, as investors in the sector likely capitalized on rate-hike bets before the release today. Money markets are now pricing in a likely 50 basis point hike at the Fed’s meeting next month.
The Consumer Discretionary, Consumer Staples, Industrials, Real Estate, CleanTech, Energy, and REITs TSX subindices were in the red as of Midday, while Health Care, Materials, Utilities, and Telecom were amongst the few sectors in the green.
Tilray (TSX:TLRY) (+11.07%), Birchliff Energy (+3.92%), Oceana Gold (+2.70%), Boralex (+2.34%) and Franco-Nevada (+2.25%) were the biggest gainers on the TSX so far today. Shopify (TSX:SHOP) (-8.11%), Nuvei (TSX:NVEI) (-7.16%), Lightspeed (TSX:LSPD) (-7.36%), Ballard (-6.85%) and Hut 8 (-6.72%) were amongst the biggest losers as of midday on the TSX today.