TSX falls to eight-day low as US rate hike prospects hit mining shares
EWC•Canada’s S&P/TSX Composite fell 0.1% to 35,706.46, its lowest close since September 16, as mining shares declined amid bond-market pressure and prospects of higher US interest rates.
1. Mining shares weigh
The S&P/TSX Composite Index ended down 44.97 points, or 0.1%, at 35,706.46. The materials group fell 1.1% as higher US rate prospects weighed on gold and silver prices; Kinross Gold dropped 11.3% after lowering its production outlook.
2. Sector moves and stocks
Consumer discretionary shares lost 2% and utilities fell 0.8%, while energy gained 1% and technology rose 2.1%. BlackBerry added 3.6% after raising its full-year revenue forecast, with record quarterly revenue at its QNX software business. Gildan Activewear tumbled 11.7% after TD Cowen cut its target price.
3. Rates and data
The global bond sell-off weighed on investor sentiment, and the US 30-year yield touched its highest level since 2004. Two Federal Reserve policymakers said the central bank would likely need to raise rates again to curb high inflation. Canadian retail sales fell 0.7% in July, while a preliminary estimate showed a 1.3% rebound in August.
