Equities in Canada’s largest market felt investors’ wrath Tuesday, as they unloaded shares across the board while waiting for word on what would happen with interest rates on both sides of the border. It was the worst day for the TSX in about a month.
The TSX Composite Index lost 270.74 points, or 1.3%, to end Tuesday at 20,222.09
The Canadian dollar gained 0.26 cents at 74.39 cents U.S.
Health-care stocks proved the biggest albatross round the neck of the market, with Bausch Health Companies off 95 cents, or 8.4%, to $10.35, while Tilray fell 13 cents, or 3.8%, to $3.30.
In the tech field, HUT 8 Mining stumbled 13 cents, or 4.5%, to $2.78, while Open Text Companies slid $2.25, or 4.3%, to $50.15.
In materials, Lithium Americas gave back two dollars, or 7.3%, to $25.43, while First Quantum Minerals forfeited $2.22, or 6.2%, to $33.35.
The federal Liberal government, trailing in the polls amid complaints about the high cost of living, on Monday said it would soon introduce wide-ranging draft legislation designed to help curb inflation.
As well, Prime Minister Justin Trudeau said authorities were “actively pursuing credible allegations” linking New Delhi’s agents to the murder of a Sikh separatist leader, an assertion India quickly dismissed as “absurd”.
On the economic schedule, Statistics Canada said the Consumer Price Index (CPI) rose 4.0% on a year-over-year basis in August, following a 3.3% increase in July. On a seasonally adjusted monthly basis, the CPI rose 0.6% in August.
The TSX Venture Exchange went south 9.75 points, or 1.7%, to 581.34.
All 12 TSX subgroups were lower on the day, with health-care stocks retreating 3%, while information technology and materials each lost 1.9%.
Stocks retreated on Tuesday as Wall Street awaited the results of this week’s Federal Reserve policy meeting.
The Dow Jones Industrials came off its lows of the day, but still fell short of breakeven 106.04 points to 34,518.26.
The S&P 500 index sank 9.51 points to 4,444.01.
The NASDAQ index hesitated 32.05 points to 13,678.19.
Disney slid more than 3% after announcing plans to nearly double its investment in its cruise and parks business. Deere, often seen as a barometer of future economic activity, fell more than 2% in the session after investment bank Evercore ISI downgraded the stock due to agricultural production concerns.
Grocery delivery stock Instacart climbed more than 20% after going live on the market.
Leadership of the striking United Auto Workers union said more workers could be called on to withhold labor if progress is not made by a Friday deadline. Stellantis advanced more than 2% in the session, while Ford and General Motors added more than 1%.
The central bank’s two-day meeting begins on Tuesday. The Fed is not expected to raise rates when announcing its decision Wednesday, with traders pricing in a 99% probability that the central bank skips a hike. Traders are putting just a 29% chance of a hike in November.
The Fed will also offer economic forecasts on Wednesday. Investors will watch for commentary around the path of inflation and future path of interest rates.
Prices for the 10-year Treasury sagged, raising yields to 4.37% from Monday’s 4.31%. Treasury prices and yields move in opposite directions.
Oil prices forged ahead 11 cents to $91.59 U.S. a barrel.
Gold prices turned lower 40 cents to $1,953.00 U.S. an ounce.