CANADA STOCKS-TSX ends lower for second day as mining shares fall
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TSX ends down 0.3% at 20,818.58
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Materials sector falls 1.25%
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Energy adds 3.35%, oil settles 3.3% higher
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First Quantum Minerals jumps 11%
(Updates at market close)
By Fergal Smith
Jan 3 (Reuters) - Canada's main stock index edged lower for a second straight day on Wednesday, including losses for metal mining shares, as a range of economic and geopolitical risks supported a more cautious approach by investors in the first week of 2024.
The Toronto Stock Exchange's S&P/TSX composite index ended down 53.56 points, or 0.3%, at 20,818.58. It was extending its pullback from a 19-month high, which it notched last Thursday at 21,015.91.
"People are coming back from an overly enthusiastic fourth quarter and maybe they are reevaluating their positions and trying to take a look at the world as we see it," said Michael Sprung, president at Sprung Investment Management.
Two major wars globally, political tensions and the build up of debt are some of the headwinds facing the economy, Sprung added.
U.S. stock indexes were also down as minutes from the Federal Reserve's December meeting failed to shake off the funk hanging over markets.
The consensus view is for interest rate cuts and a soft economic landing but that outcome only happens some of the time, Sprung said.
The materials group, which includes precious and base metals miners and fertilizer companies, fell 1.25% as a stronger U.S. dollar pressured gold and copper prices.
Consumer discretionary lost 1.8% and heavily-weighted financials ended 0.7% lower.
Energy was a bright spot, rising 3.35%, as U.S. crude oil futures settled 3.3% higher at $72.70 a barrel.
Suncor Energy climbed 5.9% after the energy firm said it saw record upstream production in the fourth quarter.
First Quantum Minerals Ltd was also a standout. Its shares rose 11% after a report that Barrick Gold Corp was exploring a possible bid for the company. Barrick's shares were down 2.9%. (Reporting by Fergal Smith in Toronto and Amruta Khandekar and Purvi Agarwal in Bengaluru; Editing by Tasim Zahid, Shilpi Majumdar and Chris Reese)
