TSX slides as miners drag, sticky US inflation fuels rate concerns
SPY•Canada’s S&P/TSX Composite fell 0.4% to 36,283.71 as miners sank and stronger-than-expected US inflation reinforced expectations for higher interest rates. The materials sector fell 3%, while financials gained 0.5%.
1. Miners weigh on TSX
Canada’s main stock index fell 0.4% to 36,283.71 points by 10:35 a.m. ET on Tuesday, as lower gold prices weighed on miners and a stronger-than-expected US inflation reading reinforced higher-for-longer rate expectations. The materials sector dropped 3%, the biggest drag on the index, after a Federal Reserve governor said more aggressive monetary policy could be needed if inflation continues to rise.
2. Inflation and rate outlook
The US Consumer Price Index rose 0.4% last month after increasing 0.6% in September, above the 0.3% rise forecast in a Reuters poll. Money markets had fully priced in a quarter-point Fed rate hike in December. Financials gained 0.5%, supported by rate expectations, while technology stocks rose 0.4% and Brent crude futures slipped below $90 a barrel.
3. GFL shares fall
GFL Environment tumbled 8.8% after its board reaffirmed its strategy to remain public. Canada also reimposed sanctions on 11 Iranian entities for their contribution to Iran’s nuclear activities and ballistic missile program, Foreign Minister Anita Anand said.
