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TSX ends down 0.6% at 24,413.94
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Posts lowest closing level since Nov. 5
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Materials sector loses 0.9%
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Energy falls 0.8%; oil settles nearly 1% lower
(Updates at market close)
By Fergal Smith
Dec 19 (Reuters) - Canada's main stock index fell to a
six-week low on Thursday, including losses for resource and
industrial shares, as investors weighed the potential impact on
returns of a more hawkish Federal Reserve and a weaker Canadian
dollar.
The Toronto Stock Exchange's S&P/TSX composite index
ended down 143.06 points, or 0.6%, at 24,413.94, its
lowest closing level since Nov. 5 and the sixth straight day of
declines. That's the longest daily losing streak since October
2023.
"I am quite encouraged by the TSX going forward but
near-term this could be a reaction to not only the Fed but
reaction to the (Canadian) dollar as well," said Philip
Petursson, chief investment strategist at IG Wealth Management.
"If foreign investors don't want to absorb a weaker Canadian
dollar, then they're probably pulling out. And the view on the
dollar continues to be weaker, so that could be driving some of
the short-term market moves."
The Canadian dollar touched its weakest intraday level since
March 2020 at 1.4467 before clawing back some of its recent
declines. On Wednesday, the Fed signaled it would slow the pace
of interest rate cuts.
All ten major sectors ended lower. The materials group,
which includes fertilizer companies and metal mining shares, was
down 0.9% as the price of copper fell.
Oil also lost ground, settling nearly 1% lower at $69.91 a
barrel. Energy declined 0.8%.
Industrials were down 1.2%, including declines for railroad
shares. Real estate ended 1.5% lower as bond yields climbed.
The Canadian 10-year yield was up 13.2 basis points at
3.357%, its highest level since Nov. 25.
Canada's new Finance Minister Dominic LeBlanc said the
country's financial reserves are enough to support businesses
and individuals if the United States imposes a major new tariff.