Canada's TSX muted as miners, tech gains offset broad drag
EWC•Canada's S&P/TSX Composite Index edged 0.1% lower to 35,444.57 points, as technology and materials gains offset declines across most sectors. Canada's economic output was flat in July, as expected.
1. Technology and materials advance
Only two of the TSX's 10 major sectors rose. Technology shares gained 1.6%, while materials shares, which include Canadian miners, rose 0.8% as gold and copper prices rebounded from multi-week lows.
2. Energy weighs on index
The energy sector fell 0.9% as Brent crude futures dropped close to 2%. Globally rising government bond yields also kept a lid on risk sentiment; the U.S. 10-year Treasury yield was at 5.248%, while the Canadian equivalent was flat.
3. Economic output flat
Data showed Canada's economic output was flat in July, as expected, signaling a softer start to the third quarter after robust growth in the prior quarter. WSP Global fell about 3% after at least three brokerages cut their price targets on the engineering firm's stock.
