Canada’s main stock index slid on Tuesday as technology shares fell sharply mirroring Wall Street peers, with investors on edge ahead of key inflation data that could set the tone for U.S. monetary policy tightening plans.
At 10:41 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 69.74 points, or 0.35%, at 19,599.43.
The index touched an eight-week high in the previous session, helped by strong earnings.
“We’re seeing a little bit of weakness from the U.S. side as investors await the CPI reading,” said Angelo Kourkafas, investment strategist at Edward Jones Investments.
“The CPI will be the determining factor, whether another 75 basis points hike is needed in September, or if the Fed can pivot to tightening at a slower pace.”
The Fed hiked rates by a hefty 75 bps in June and July, with traders expecting about a two-third chance of a 75 bps hike next month. The tech-heavy Nasdaq fell over 1% after a dismal forecast from Micron Technology dragged chip and technology stocks lower.
Oil up as Russian pipeline halt revives supply constraint fears
Canada’s tech index dropped 3.8%, most among the major sectors.
The energy sector rose 1.6% as U.S. crude prices and Brent crude added about 1.3% each following supply concerns after Russia said oil exports to Europe via the section of a pipeline had been suspended.
The financials sector slipped 0.5%, while the industrials sector fell 0.1%.
Canadian weed company Cronos Group Inc tumbled 13% as its quarterly revenue fell short of estimates and it flagged higher costs.
The materials sector, which includes precious and base metals miners and fertiliser companies, lost 0.2%.
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