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TSX ends down 0.5% at 22,075.10
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Communication, real estate stocks decline
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Energy rises 1.2%; oil settles 1.7% higher
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Metal miners gain as gold posts new record high
(Updates at market close)
By Purvi Agarwal and Fergal Smith
April 2 (Reuters) - Canada's main stock index ended
lower on Tuesday, giving back some recent gains, as increased
uncertainty around the timing of expected Federal Reserve
interest rate cuts weighed on the communication services and
real estate sectors.
The Toronto Stock Exchange's S&P/TSX composite index
ended down 110.15 points, or 0.5%, at 22,075.10,
pulling back from a record closing high on Monday.
"This modest weakness is really driven by concerns that the
economic strength in the U.S. and higher oil prices in the last
couple of days could delay the Fed's rate cuts", said Angelo
Kourkafas, senior investment strategist at Edward Jones
Investments.
Canada's 10-year bond yield touched its highest
level since mid-February at 3.678%.
High-dividend paying sectors such as communication services
and real estate could particularly benefit from lower borrowing
costs. Communication services fell 2.1% and real estate was down
1.3%.
Industrials and heavily-weighed financials were also a drag,
with both sectors losing 1%. Helping to offset those declines
were gains for resource shares.
The energy sector added 1.2% as oil settled 1.7%
higher at $85.15 a barrel. The move in oil came as supplies face
fresh threats from Ukrainian attacks on Russian energy
facilities.
The materials sector, which includes metal miners and
fertilizer companies, added 0.6% as copper prices rose
and gold climbed to a fresh record high.