Canada's main stock index fell on Tuesday as losses in healthcare stocks outweighed gains in energy, while investors remained cautious ahead of Federal Reserve Chair Jerome Powell's nomination hearing.
At 9:49 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was down 54.08 points, or 0.26%, at 21,018.24, after hitting its lowest intraday level since Dec. 21 in the previous session.
Investors expect Powell will give more clues to the timing of policy tightening when he appears before the committee later in the day, as bets grew for a quicker pace of US interest rate hikes.
"Investors may look to prepared comments from both (Powell and Vice-Chair nominee Lael Brainard) and how they answer questions from politicians for hints into how aggressively the Fed could move to raise interest rates," Colin Cieszynski, chief market strategist at SIA Wealth Management, said.
Healthcare stocks fell 1.3%, weighed by weakness in pot producers as companies including Tilray Inc, Aurora Cannabis Inc, Canopy Growth Corp all fell between 0.5% and 3.9%.
Limiting losses was the energy sector that climbed 1.4% as oil prices rose, supported by tight supply and hopes that rising coronavirus cases and the spread of the Omicron variant will not derail a global demand recovery.
Toronto index inches lower on rate hike worries after jobs data
The benchmark index gained 22% in 2021, its best yearly performance since 2009, supported by massive stimulus, vaccine rollouts and hopes of a global economic recovery. However, the index recently lost steam as investors fretted about the prospect of a more hawkish Fed this year.
The materials sector, which includes precious and base metals miners and fertilizer companies, lost 0.4%.
Highlights
The TSX posted 12 new 52-week highs and one new low.
Across all Canadian issues, there were 38 new 52-week highs and 16 new lows, with total volume of 49.34 million shares.
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