Canada’s main stock index fell on Thursday, tracking declines on Wall Street as hotter-than-expected U.S. producer prices data fanned rate-hike worries, while Shopify led losses on a dour forecast.
At 10:06 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 176.49 points, or 0.85%, at 20,543.9.
Shopify Inc slumped 16.1% as the technology company forecast slowing revenue growth for the current quarter despite price hikes and new product launches, signaling that macroeconomic challenges were weighing on its merchants’ online businesses.
The stock dragged Canada’s technology sector down 5.5%.
Wall Street opened sharply lower on Thursday after the producer inflation report added to evidence of a strong U.S. economy, which could allow the Federal Reserve to keep raising interest rates for longer than expected.
“The TSX is getting dragged down today by a sell off in the global equity markets, particularly the U.S.,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.
“It is a general sense that the Fed is probably not finished raising interest rates and they may have to keep on going.”
Gold miners weighed on the resource-heavy index on downbeat earnings from yellow metal miners like New Gold Inc, while falling spot gold prices added to declines.
In company news, Cenovus Energy Inc dropped 5.1% as the energy firm named COO Jon McKenzie as president and CEO, while its upstream production also fell.
Birchcliff Energy fell 3.0% as the oil producer reported a fall in fourth-quarter profit.
The oil companies dragged the energy sector down by 0.8%.
Kinross Gold Corp beat profit estimates, helped by higher production and lower costs. However, shares of the gold miner fell 2.9%, tracking broader sector losses.
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