CANADIAN EQUITIES – Toronto index pulls back as energy stocks and inflation worries weigh
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By Amal S
October 6 (Reuters) – Canada’s main stock index fell on Wednesday as energy stocks tracked lower oil prices, sentiment still reeling over concerns over rising inflation.
At 9:42 a.m. ET (1342 GMT), the Toronto Stock Exchange’s S & P / TSX Composite Index was down 95.19 points, or 0.47%, to 20,088.24, a day after posting its best daily performance in almost two weeks.
Leading the declines, the energy group lost 2.8%, a day after the sub-sector index hit its highest level in nearly two and a half years.
Oil prices fell nearly 1% on Wednesday, but were at a multi-year high, above $ 83 a barrel, supported by OPEC + ‘s refusal to increase production faster.
“It would not be surprising to see the Canadian markets pull back a bit, given that both energy prices and the US market are dropping today,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.
Global markets were weighed down by oil prices hitting their highest level since November 2014, with investors worried that soaring energy costs would force central banks to raise rates faster to fight rising prices. ‘inflation.
“Inflation is putting pressure on central banks to start raising interest rates, and we saw this last night in New Zealand, suggesting that more central banks may start raising rates l next year and that could include the Bank of Canada, ”Cieszynski added.
The materials sector, which includes precious and base metal mining companies and fertilizer companies, lost 0.4% as gold prices edged down under pressure from a resilient dollar and higher US bond yields.
Converge Technology Solutions Corp and Mullen Group Ltd were the index’s biggest drops.
The TSX posted a new 52 week high and no new lows.
Among all Canadian issues, there were eight new 52-week highs and nine new lows, with total volume of 47.28 million shares. (Reporting by Amal S in Bangalore; Editing by Maju Samuel)