Canada’s main stock index slipped on Thursday, as losses in commodity-linked stocks offset gains in technology, while Canada Goose’s shares crumbled after the luxury goods maker cut its full-year forecast.
At 10:12 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 42.99 points, or 0.21%, at 20,708.06.
Canada Goose Holdings Inc hit the bottom of the TSX, crashing 14.2% after it trimmed its full-year revenue and profit forecasts after COVID-19 disruptions weighed on sales of its luxury parkas and jackets in China during the third quarter.
Commodity-linked stocks were a drag on the main index, with energy losing 1.5% and materials shedding 2.0% as gold prices fell more than 1% and oil prices lost ground.
Driving risk sentiment was the U.S. Federal Reserve’s smaller interest rate hike on Wednesday and dovish cues from Chair Jerome Powell, who said that the “disinflationary” process was underway.
“There’s all these factors that are lining up for a recession and yet the Fed is still being kind of aggressive on inflation and that’s where the markets were spooked historically,” said Nicolas Katsiyianis, head of research at Eight Capital in Toronto.
“Now they feel like he (Powell) wasn’t as aggressive on the call, so maybe he’s backing off a little bit.”
Technology stocks rose 2.6% following a rise in the tech-heavy Nasdaq on Wall Street.
Meanwhile, data showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week as the labor market remained resilient.
Telecom major Rogers Communications Inc gained 0.8% after beating estimates for quarterly revenue and phone subscriber growth.
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