TSX falls for fifth day as utilities slide
Reuters
Published Oct 12, 2022 07:41AM ET
Updated Oct 12, 2022 04:56PM ET
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index edged lower on Wednesday, pressured by declines for the utilities sector and Cameco (NYSE:CCJ) Corp, as U.S. producer price data bolstered expectations for additional aggressive interest rate hikes by the Federal Reserve.
The Toronto Stock Exchange's S&P/TSX composite index ended down 10.40 points, or 0.1%, at 18,206.28.
That was well above the worst levels of the day but was the fifth straight day of losses and the lowest closing level since March 2021.
"Investors are reacting to a stronger-than-expected U.S. PPI report, which is seen as a forward-looking measure of inflation," said Brandon Michael, senior analyst at ABC Funds in Toronto.
The S&P 500 also ended lower in a choppy session as U.S. producer prices rose 8.5% in September, hotter than expected, and after minutes from the last Federal Reserve meeting showed policymakers agreed they needed to maintain a more restrictive policy stance.
The Toronto market's utilities sector fell 2.5%, extending recent declines, while energy was down 0.1% as oil prices fell for a third day. U.S. crude oil futures settled 2.3% lower at $87.27 a barrel.
Cameco Corp was one of the biggest single decliners, falling 13.5%, after the company and Brookfield Renewable Partners (NYSE:BEP) said on Tuesday they would acquire nuclear power plant equipment maker Westinghouse Electric in a $7.9-billion deal including debt, amid renewed interest in nuclear energy.
Helping to cap losses for the index, the materials group, which includes precious and base metals miners and fertilizer companies, added 1.1% as gold prices rose and the consumer staples sector ended 1.5% higher.
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Written By: Reuters
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