Canada's main stock index extended losses on Thursday, pressured by declines in energy and industrial shares as well as fears over the impact of soaring inflation.
At 9:41 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was down 27.78 points, or 0.14%, at 20,073.6, a day after recording its worst session in more than a week.
The energy sector dropped 1.2%, tracking lower oil prices, on concerns that high fuel prices could hurt economic growth. Still, crude remained close to $110 a barrel.
"Oil has hung up pretty well as it's anyway over $100 and energy companies are still making a lot of money. Certainly it is pulling back with the general risk off tone in the markets," said Gregory Taylor, portfolio manager at Purpose Investments.
"It could be time for gold and some of the other base metals to shine."
The materials sector, which includes precious and base metals miners and fertilizer companies, added 2.2%, with gold prices bouncing back as a drop in U.S. dollar and Treasury yields coupled with a slide in risk assets rekindled demand for the safe-haven bullion.
The financials sector slipped 0.5%, while the industrials sector fell 1.2% with Canadian Pacific Railway Ltd and Canadian National Railway Co both nearly down 2% after Citigroup cut price targets of both railroad operators.
In earnings, Canada Goose Holdings Inc gained 6.0% after the company forecast annual earnings and revenue above Wall Street expectations after reporting a surprise quarterly profit, encouraged by strong demand for its luxury parkas and jackets.
On the economic data front, domestic producer prices rose by 0.8% in April from March on higher prices for energy and petroleum products but moderated by lower prices for softwood lumber, Statistics Canada said.
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