CANADA STOCKS-TSX hits over 1-week low on energy drag; Canada Goose tumbles
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TSX down 0.3%
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Canada Goose tanks after brokerages downgrade the stock
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Energy stocks fall
(Updated at 10:40 a.m. ET)
By Siddarth S
Oct 19 (Reuters) - Canada's resource-heavy stock index wilted on Thursday as energy stocks fell on lower oil prices after the United States eased sanctions on Venezuela, while shares of luxury parka maker Canada Goose tumbled after brokerages downgraded the stock.
At 10:40 a.m. ET (1440 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 64.65 points, or 0.33%, at 19,386.05, hitting its lowest in more than a week.
The energy sector, which constitutes 21% of the benchmark index, fell 0.2%.
Both Canadian and U.S.-listed shares of Canada Goose tanked more than 8% after two brokerages downgraded the stock.
The broader consumer discretionary index fell 0.4%.
Rate-sensitive real estate sector fell more than 1% after 10-year U.S. Treasury yields jumped nearly 5%, levels not seen since the financial crisis in 2007, on prospects of no rate cuts any time soon from the U.S. Federal Reserve.
Markets will also be awaiting comments from Fed officials, including Chair Jerome Powell, later in the day for more clues on the central bank's interest rate path.
Investors will watch for Canada's August retail sales on Friday, followed by the crucial Bank of Canada's(BoC) monetary policy meeting next week.
"With the additional risk of geopolitical tensions in the Middle East, most of the central banks are using that perhaps as one of the reasons on why they are going to step back," said Jennifer Lee, senior economist, BMO Capital Markets.
Canada's annual inflation rate unexpectedly slowed to 3.8% in September and underlying core measures also eased, data showed on Tuesday, prompting markets and analysts to trim bets for another interest rate hike next week.
"Inflation report was like the final nail in the BoC's decision to probably stay on hold next week," Lee added.
Canada's producer prices grew by 0.4% in September from August on higher prices for energy and petroleum products.
(Reporting by Siddarth S in Bengaluru; Editing by Shweta Agarwal)
