CANADA STOCKS-Toronto shares decline as falling crude prices weigh on energy stocks
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TSX down 0.5%
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Manulife Financial, Stelco Holdings up on brokerage upgrades
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U.S. Fed decision on Wednesday
(Updated at 9:40 a.m. ET/ 1440 GMT)
By Shashwat Chauhan
Dec 12 (Reuters) - Canada's main stock index fell amid a broad-based selloff on Tuesday, with energy stocks leading the fall on declining crude oil prices, as investors assessed the latest batch of U.S. inflation data.
At 9:40 a.m. ET (14:40 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 107.67 points, or 0.53%, at 20,210.69. Wall Street, too, had a weaker start.
Energy stocks were leading the selloff, dropping 1.8% amid sliding crude oil prices.
Meanwhile,
U.S. consumer prices unexpectedly rose in November as inflation pushed higher, offering evidence that the Federal Reserve was unlikely to pivot to interest rate cuts early next year.
"Inflation angst is old news. While the last mile of progress towards 2% may still take some time and see bumps along the way, it seems clear that price pressures are abating," said Madison Faller, global investment strategist at J.P. Morgan Private Bank.
"Investor debates around the Fed's next move have shifted in tandem with the last few months of progress. There's hardly a discussion around another hike, with the focus shifting to when cuts might come."
The data comes a day before the U.S. central bank is set to announce its decision on monetary policy, with consensus tilted towards the Fed keeping its rate steady.
Following the data, traders pared earlier bets the Fed could start interest-rate cuts as soon as March, and now are pricing the Fed's May meeting as the likeliest start for interest-rate reductions.
Among individual stocks, Manulife Financial rose 1.5% after brokerage RBC upgraded Canada's largest insurer to "outperform" from "sector perform".
Canada's biggest steelmaker, Stelco Holdings gained 5.9% after J.P.Morgan upgraded the stock to "overweight" from "neutral".
Cogeco Communications
fell 4.6% after Rogers Communications sold its stake in the company to Canada's second-largest pension fund Caisse de dépôt et placement du Québec. (Reporting by Shashwat Chauhan in Bengaluru;Editing by Ravi Prakash Kumar)
