CANADA STOCKS-TSX falls over 1% as commodity-related stocks weigh on index
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TSX falls over 1%
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Materials and energy fall over China growth concerns
(Updated at 10:20 a.m. ET/ 1520 GMT)
By Purvi Agarwal and Shubham Batra
Jan 17 (Reuters) - Canada stocks touched a near four-week low after dropping over 1% on Wednesday, hurt by heavy losses in commodity-linked shares, while a higher-than-expected December U.S. retail sales data tempered hopes of early rate cuts from the Federal Reserve.
At 10:20 a.m. ET (1520 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 242.59 points, or 1.16%, at 20,705.5.
Heavyweights energy and materials index slumped 1.2% and 1.9%, respectively, as oil and copper prices fell after weak China data spurred demand concerns from the world's second-largest economy, while gold prices slid on a stronger dollar.
Rate-sensitive technology shares also fell 1.9% as treasury yields rose after U.S. retail sales data indicated a strong demand driven by higher motor-vehicle purchases and retailers offering discounts.
"Dollar strength again for the second day in a row is putting pressure on risk assets and particularly commodities," said Mike Archibald, vice president and portfolio manager at AGF Investments.
"Clearly, the market is re-calibrating its expectations as to when rate cuts are likely to happen, and that's putting some pressure obviously on equities," Archibald added.
Traders' expectations
of a 25-basis-point rate cut by the Fed in March dipped to 55% from around 60% before the data was released, according to CME's Fedwatch Tool.
Back home, producer prices in Canada fell by 1.5% in December compared to November on lower prices for energy and petroleum products, chemicals and related products, in the largest decline since August 2022.
On the individual stock front, Silver miner Pan American fell 5.4% after it announced preliminary production figures for 2023.
Electronics company Celestica lost 5.0%, hitting a near six-week low.
Shares of telecom operator Rogers Communications declined 0.8% after the company announced changes to its board. (Reporting by Purvi Agarwal in Bengaluru; Editing by Tasim Zahid)
