U.S. Markets closed
  • S&P 500

    3,911.74
    +116.01 (+3.06%)
     
  • Dow 30

    31,500.68
    +823.32 (+2.68%)
     
  • Nasdaq

    11,607.62
    +375.43 (+3.34%)
     
  • Russell 2000

    1,765.74
    +54.06 (+3.16%)
     
  • Crude Oil

    107.06
    +2.79 (+2.68%)
     
  • Gold

    1,828.10
    -1.70 (-0.09%)
     
  • Silver

    21.13
    +0.09 (+0.42%)
     
  • EUR/USD

    1.0559
    +0.0034 (+0.3273%)
     
  • 10-Yr Bond

    3.1250
    +0.0570 (+1.86%)
     
  • Vix

    27.23
    -1.82 (-6.27%)
     
  • GBP/USD

    1.2270
    +0.0009 (+0.0736%)
     
  • USD/JPY

    135.2100
    +0.2770 (+0.2053%)
     
  • BTC-USD

    21,081.09
    +82.68 (+0.39%)
     
  • CMC Crypto 200

    462.12
    +8.22 (+1.81%)
     
  • FTSE 100

    7,208.81
    +188.36 (+2.68%)
     
  • Nikkei 225

    26,491.97
    +320.72 (+1.23%)
     

CANADA STOCKS-TSX hits 2-week low as rising interest rates hit sentiment

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

(Adds details throughout and updates prices)

* TSX ends down 228.54 points, or 1.1%, at 20,563.89

* Posts lowest closing level since May 26

* Financials and technology both fall 1.2%

* Materials group loses 1.4%; energy ends 1% lower

By Fergal Smith

TORONTO, June 9 (Reuters) - Canada's main stock index fell to a two-week low on Thursday, including declines for financial and resource shares, as the prospect of rising interest rates globally to tackle inflation pressures weighed on investor sentiment.

The Toronto Stock Exchange's S&P/TSX composite index ended down 228.54 points, or 1.1%, at 20,563.89, its lowest closing level since May 26.

"I think that (the drop in Canadian shares) is probably a reaction maybe to the reality sinking in that interest rates are on the rise everywhere and that the outlook for stock markets generally will remain subdued," said Stuart Cole, the head macroeconomist at Equiti Capital.

"The ECB in a sense was the last bastion of a loose monetary policy, and now that has gone too."

The European Central Bank confirmed it would end a long-running bond-buying scheme on July 1 and signaled a string of interest rate hikes from July as it battles stubbornly high inflation.

U.S. stocks were also solidly lower as investors grew cautious ahead of data on Friday that is expected to show that consumer prices remained high in May.

Bank of Canada Governor Tiff Macklem said inflation would dictate how fast Canadian interest rates go up, reiterating that the bank might need to make more increases in a row or consider a move larger than 50 basis points.

The Toronto market's heavily weighted financial services group fell 1.2%, while technology also ended 1.2% lower.

It included a decline of 8.4% for the shares of enterprise software solutions company Enghouse Systems Ltd, adding to the previous day's sharp slide.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.4% as gold and copper prices fell.

Energy gave back some recent, falling 1%, as U.S. crude oil futures settled 0.5% lower at $121.51 a barrel. (Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru nd Diane Craft)