TSX falls for fourth day as oil prices hit 2022 low
Reuters
Published Dec 08, 2022 09:19
Updated Dec 08, 2022 09:30
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index edged lower on Wednesday to its lowest closing level in nearly three weeks as a drop in oil prices weighed on energy shares and the Bank of Canada raised interest rates to the highest level in almost 15 years.
The Toronto Stock Exchange's S&P/TSX composite index ended down 16.95 points, or 0.1%, at 19,973.22, its fourth straight day of declines and its lowest closing level since Nov. 17.
U.S. benchmark the S&P 500 also dipped as investors weighed potential recession fears linked to the pace of the Federal Reserve's monetary policy tightening.
The Bank of Canada hiked its key policy rate by half a percentage point to 4.25%, the highest level since January 2008, but the market impact was limited by a signal its unprecedented tightening campaign was near an end.
The energy sector fell 0.6% as the price of oil settled down 3% at $72.01 a barrel, its lowest level of the year, driven by a report showing bigger-than-expected increases in U.S. fuel stocks.
"This report shows the economy is clearly weakening and does not give energy bulls any reasons to buy into this weakness," Edward Moya, senior market analyst at OANDA in New York, said in a note.
Heavily-weighted financials dipped 0.4% and technology ended 0.5% lower.
Helping to cap declines for the TSX were gains for the consumer discretionary and consumer staples sectors, up 1.2% and 0.7% respectively.
The materials group, which includes precious and base metals miners and fertilizer companies, added 0.8% as gold and copper prices rose.
Get The App
Written By: Reuters
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.