TSX Ends Notably Lower As Interest Rate Concerns Weigh

(RTTNews) - Canadian stocks fell on Tuesday amid rising concerns about slowing growth and aggressive rate hikes by central banks.

The Federal Reserve, which is scheduled to announce its policy on Wednesday, is widely expected to raise interest rates by another 75 basis points, although some see an outside chance for a 100 basis point rate hike.

CME Group's FedWatch Tool is currently indicating an 84% chance of a 75 basis points rate hike and a 16% chance of a 100 basis point rate hike.

Selling was so broad based that all the sectoral indices ended in negative territory.

Shares from technology, real estate and healthcare sectors were the prominent losers. Consumer staples, consumer discretionary and materials shares also ended notably lower.

The benchmark S&P/TSX Composite Index, which plunged to 19,246.77, losing more than 300 points, ended the session with a loss of 193.69 points or 0.99% at 19,368.69.

Canada's inflation slowed more than expected in August, but still the mood in the market remains quite bearish.

Data from Statistics Canada showed that the consumer price index rose 7% on a year-over-year basis in August, down from a 7.6% gain in July. Economists has expected a 7.3% increase.

The CPI rose 0.1% on a seasonally adjusted monthly basis in August, same as seen in July. Core CPI, excluding food and energy, eased to 0.2% from 0.5% in the previous month.

Interfor Corporation (IFP.TO), Bombardier Inc (BBD.B.TO), West Fraser Timber (WFG.TO) and Shopify Inc (SHOP.TO) lost 5 to 6.5%.

Goeasy (GSY.TO), Magna International (MG.TO), FirstService Corporation (FSV.TO), Constellation Software (CSU.TO), Colliers International Group (CIGI.TO) and George Weston (WN) shed 1.4 to 2.8%.

Richelieu Hardware (RCH.TO) climbed 1.8%. Precision Drilling Corp (PD.TO), Brookfield Infrastructure Corporation (BIPC.TO) and Nutrien (NTR.TO) also ended notably higher.