TSX Ends Sharply Lower As Inflation Data Triggers Sell-off
(RTTNews) - The Canadian market ended sharply lower on Tuesday as hotter-than-expected inflation data raised bets the Bank of Canada will tighten its policy by hiking interest rates.
Weak crude oil and bullion prices weighed as well.
The benchmark S&P/TSX Composite Index ended with a loss of 297.90 points or 1.45% at 20,242.07, recording its biggest single session drop in about three weeks.
Data from Statistics Canada showed the annual inflation rate in Canada rose to 4.4% in April of 2023 from the 19-month low of 4.3% in the previous month, well above the expected increase of 4.1%. The hotter-than-expected inflation data has raised fears the Canadian central bank will tighten its policy stance.
Core consumer prices in Canada increased 4.1% in April over the same month in the previous year.
A separate data from Statistics Canada showed manufacturing sales in Canada rose slightly by 0.7% month-over-month in March 2023, reversing a 3.6% drop in February.
As selling was widespread, all the sectoral indices ended in negative territory. Energy, materials, real estate, healthcare and financials shares were among the major losers.
Enbridge (ENB.TO), Precision Drilling Corporation (PD.TO), Teck Resources (TECK.B.TO), Magna International (MG.TO), Agnico Eagle Mines (AEM.TO), Canadian Natural Resources (CNQ.TO), Shopify Inc (SHOP.TO), Franco-Nevada Corporation (FNV.TO) and Royal Bank of Canada (RY.TO) lost 2 to 4%.
Lithium Americas Corp (LAC.TO) rallied 2.3%. SNC-Lavalin Group (SNC.TO), Cogeco Inc. (CGO.TO), Boyd Group Services (BYD.TO) and Bombardier Inc (BBD.A.TO) also ended notably higher.
DAX Advances In Cautious Trade
European Shares Mostly Lower; FTSE 100 Bucks Trend On Soft Inflation Data
Asian Shares Retreat As US-China Tensions Weigh
European Shares Seen Tad Lower At Open
European Economic News Preview: UK Inflation Data Due
Australian Market Trims Early Losses In Mid-market
Asian Markets Trade Mostly Lower
