Canada’s main stock index fell on Wednesday, with precious metal miners and utility stocks leading the declines, as bond yields rose after U.S. private payrolls data suggested resilient demand for labor.
At 09:58 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 140 points, or 0.72%, at 19,230.99.
The TSX rallied 5% in the last two days after softer U.S. economic data and a smaller-than-expected interest rate hike from Australia stirred hopes for less aggressive tightening by the Federal Reserve.
However, sentiment in the market weakened as New Zealand’s central bank stuck to its rate-hiking spree and after U.S. data showed a spurt in private sector hiring in September, suggesting demand for workers remained strong despite rising interest rates and tighter financial conditions.
The payrolls data triggered a rise in Treasury yields , which in turn weighed on rate-sensitive technology stocks that fell 0.8%. Canadian bond yields also climbed.
All eyes are now on more comprehensive and closely watched nonfarm jobs report on Friday for further evidence that the Fed’s tightening measures are having the desired cooling effect on the labor market.
Meanwhile, Canadian trade balance data for August came in lower than expected, showing a decline in exports as crude prices took a toll.
Utilities sector dipped 1.6%, dragged down by a 4.8% slide in Ballard Power after Citigroup cut price target on its U.S.-listed shares.
The materials sector, which includes precious and base metals miners and fertilizer companies, lost 1.6% as gold futures fell 0.8% to $1,707.1 an ounce.
The heavyweight energy sector climbed 0.5%, tracking a rise in crude prices, while the financial sector slipped 0.7%.
Dye & Durham (D&D) slid 3.9% after it pitched a $825.37 million (A$1.27 billion) bid for Australia’s Link Administration.
On the TSX, 42 issues were higher, while 193 issues declined for a 4.60-to-1 ratio to the downside, with 26.60 million shares traded.
The TSX posted no new 52-week high and no new low.
Across all Canadian issues there was one new 52-week high and 16 new lows, with total volume of 44.49 million shares.