The Canada stock market benchmark TSX ended down on Tuesday, snapping its lengthy winning streak, pulled back by losses in energy, financials and other sectors.
The S&P/TSX Composite Index dropped 2.52 points to 20,275.76, unable to shrug off a weaker performance on Wall Street with investors concerned about inflation.
The energy sector was the biggest loser of the day, dropping 0.9%, as profit-taking accelerated from its gains from the previous day after major oil producers made a surprise cut to their output targets. The financial sector followed in its wake, dropping 0.8%.
Materials, however, bucked the trend, rising 1.6% as gold rose above $2,000 per ounce. Technology was also a winner, up 0.7%.
Greg Taylor, Chief Investment Officer at Purpose Investments, suggested money managers may have been adjusting their strategies for the start of the month. “We’re still setting up into the new month, so there’s a lot of volatility and a lot of positioning happening,” he said.
Johann M Cherian and Fergal Smith, Reuters’ reporters, filed corroborative reports to provide an in-depth image of the situation.
The Toronto Stock Exchange (TSX), a subsidiary of TMX Group, is the 9th largest stock exchange in the world among main markets and secondary markets, with a total market capitalization of $3.356 trillion. Founded in 1861, it serves as the head office for many of Canada’s largest banks, insurance companies, and other corporations.
Fergal Smith is an Investment Reporter for Reuters, covering the financial markets throughout North America. He contributes regularly to print and online outlets of the network, as well as maintains international connections to provide up-to-date news from over 130 global markets. Smith has developed a specialty in translating complex financial numbers into familiar plain-language pieces to ensure the stories have a wide reach.