Canada’s main stock index extended losses for the second straight session on Thursday, dragged down by healthcare and industrial stocks as weak U.S. economic data added to fears of a looming recession.
At 10:52 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 72.27 points, or 0.35%, at 20,303.96.
The healthcare index fell 1.4%. with cannabis producer Tilray Brands Inc dropping 3.9% and peers Canopy Growth and Cronos Group sliding 2.0% and 2.1%, respectively.
Industrials were the biggest drag in a broad-based decline.
Investors around the globe were rattled following a slew of weak economic data from the United States on Tuesday reignited fears of a global recession, with sentiment also taking a knock from hawkish commentary by Federal Reserve policymakers.
The TSX snapped its longest winning streak since October 2021 in the previous session, taking a breather from a sharp rally since the start of the year on hopes of less aggressive monetary policy by central banks.
Money markets see a 62.2% probability of a 25 basis point rate hike by the Bank of Canada next week.
Investors eyed retail sales data due on Friday at 8:30 am ET for further cues on the strength of the Canadian economy.
“Retail sales are coming out tomorrow and they are about to be negative. That probably could be affecting (markets) in the near term as they came weaker in the U.S. and are expected to be weaker in Canada,” said Kevin Headland, co-chief investment strategist at Manulife Investment Management.
Capping losses on the index, gold miners gained 1.7% tracking firm gold prices.
Shares of silver miner First Majestic Silver Corp dropped 2.8% on lower fourth-quarter production, bucking a broader rally in precious metal miners.
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