(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.