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CANADA STOCKS-TSX down for sixth day as higher bond yields weigh
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CANADA STOCKS-TSX down for sixth day as higher bond yields weigh
Dec 19, 2024 8:20 AM

(Updates with market open prices)

By Ragini Mathur

Dec 19 (Reuters) - Canada's main stock index fell for

the sixth straight session on Thursday, as rising bond yields

weighed on economically sensitive sectors such as industrials

and real estate.

The Toronto Stock Exchange's S&P/TSX composite index

fell 0.5% to 24,444.47 points, trading near a six-week

low.

The declines came even as Wall Street attempted a rebound

from sharp losses on Wednesday, when the U.S. Federal Reserve

cut rates as expected, but Chair Jerome Powell said more

reductions in borrowing costs hinge on further progress in

lowering stubbornly high inflation.

Crude oil and silver prices came under

pressure for a second day.

"A strong U.S. dollar is not good for commodities. It is not

a good thing for our commodities-based economy," said Allan

Small, senior investment advisor at Allan Small Financial Group

with iA Private Wealth.

The policy announcement showed heightened uncertainty ahead

of Donald Trump entering the White House.

Although Trump may have been just at the periphery of

officials' thinking at the Fed, he was a central focus in Ottawa

when Canadian Finance Minister Chrystia Freeland quit after

clashing with Prime Minister Justin Trudeau on how to handle

possible U.S. tariffs under the next U.S. administration.

The Bank of Canada lowered interest rates last week and is

expected to ease further in 2025 amid a weakening outlook.

The domestic retail sales data for November, due on Friday,

could give further clues about the economy's health.

"If it's a good number, they (investors) will take it with a

grain of salt. If it's a negative number, it'll just be another

negative data point to tell us that the Canadian economy is

stagnant," Small said.

Industrial stocks fell 1%, while real estate

dropped 0.7%, as the prospect of fewer U.S. rate cuts

supported U.S. and Canadian bond yields.

Canada's 10-year Treasury yield touched a more

than three-week high at 3.329%.

Company-wise, Vermilion Energy ( VET ) rose 4.1% after the

oil and gas firm forecast 2025 free cash flow above analysts'

estimates.

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