TSX Sheds 2.1% As Stocks Tumble On Concerns Over Inflation, Interest Rates
(RTTNews) - The Canadian stock market suffered one of its worst setback in recent months on Thursday as worries about, inflation, interest rates and outlook for economic growth weighed on sentiment, rendering the mood extremely bearish.
The benchmark S&P/TSX Composite Index ended with a loss of 423.07 points or 2.09% at 19,791.62, the lowest close in about four weeks.
As selling was widespread, all the sectoral indices fell. The Consumer Staples Capped Index, which dropped 0.92%, suffered the least damage. The Information Technology Capped Index, which was the worst hit, declined 3.39%.
Real Estate, Materials, Consumer Discretionary, Utilities and Industrials indices lost 2 to 2.4%, while Financials, Communication Services and Energy indices shed 1.84%, 1.79% and 1.48%, respectively. The Healthcare Index ended 1.07% down.
Rising concerns about Canadian inflation and the impact of higher interest rates on economic growth continued to hurt sentiment.
The Federal Reserve held its interest rate steady on Wednesday but said at least one more hike is likely by the end of this year. The Bank of England and the Swiss National Bank also left their rates unchanged, while Norway's Norges Bank and Sweden's Riksbank, both raised their rates by 25 basis points.
On the economic front, data from Statistics Canada showed new home prices in Canada edged up by 0.1% mom in August 2023, following a 0.1% decline in July. Year-on-year, the cost of new homes fell by 0.9% in August.
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