TSX falls as miners take a hit, hot US inflation weighs
SPY•Canada’s S&P/TSX Composite fell 1.11% to 35,584.46 as weaker metal prices dragged on miners and hot US inflation raised expectations for a Federal Reserve rate hike later this month.
1. Miners lead declines
Canada’s S&P/TSX Composite closed down 1.11% at 35,584.46 on Wednesday, retreating from a three-week peak. The materials sector fell 4.3% as precious metal prices declined, while financials lost 0.5% and technology shares dropped 2.4%; Celestica fell 9.2% and Shopify declined 2.2%.
2. Inflation and rates
US consumer prices accelerated in September on higher gasoline costs, boosting expectations for a Federal Reserve rate hike later this month and weighing on US indexes. Canada’s 10-year bond yield rose to 3.872%. Energy shares gained 0.07% as oil held above $100 per barrel. Edward Jones strategist Angelo Kourkafas said Canada would join other global central banks in raising rates, but he did not expect as much tightening as futures or bond markets anticipate.
3. Other market news
Iran was reportedly using new tactics to target ships, seeking to keep oil prices high and influence the US midterm elections. Canada is pursuing a trade pact with India and closer ties with the EU to reduce reliance on the US. Fairfax Financial Holdings will buy a majority stake in India’s IDBI Bank in a deal worth 528.78 billion rupees ($5.56 billion); Fairfax shares were flat.
