The Perfect Enemy | Toronto index falls on losses in commodity shares, U.S.-China tensions
August 17, 2022

Toronto index falls on losses in commodity shares, U.S.-China tensions

Toronto index falls on losses in commodity shares, U.S.-China tensions  ReutersView Full Coverage on Google News

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Monitors display the stock market numbers in the financial district in Toronto, Ontario, Canada March 16, 2020. REUTERS/Carlos Osorio


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  • TD Bank to buy U.S. brokerage Cowen in $1.3 bln deal
  • Air Canada raises annual cost forecast, misses earnings
  • Canadian factory activity grows at slowest pace in two years
  • TSX falls 0.9%

Aug 2 (Reuters) – Canada’s main stock index tracked losses in commodity shares on Tuesday, with a slowdown in manufacturing activity last month and tensions between the United States and China over U.S. House Speaker Nancy Pelosi’s expected visit to Taiwan denting sentiment.

At 10:13 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) was down 173.01 points, or 0.88%, at 19,519.91, amid a broader risk-off mood across the global markets on concerns that Pelosi’s trip to Taiwan could worsen tensions between Beijing and the Washington.

The energy sector (.SPTTEN) and the materials sector (.GSPTTMT) dropped 2.6% and 0.7%, respectively, tracking weakness in commodity prices as Sino-U.S. tensions and weak factory data across the United States, Europe and Asia on Monday pushed investors to safer assets.

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In Canada, data showed production and new orders declined for the first time since the early stages of the coronavirus pandemic. read more

“Businesses have right now shrunk down with rising labor costs and higher interest rates. You can’t keep expanding, you can’t keep hiring and you can’t keep growing the business when conditions are not favorable,” said Allan Small, senior investment advisor at Allan Small Financial Group.

The financials sector (.SPTTFS) slipped 1.1%, while industrial stocks (.GSPTTIN) fell 0.9%.

Meanwhile, Air Canada (AC.TO) dipped 1.2% after missing on earnings and forecasting higher full-year expenses. read more

Toronto Dominion Bank (TD.TO) fell 1.2% on announcing it will buy New York-based boutique investment bank Cowen (COWN.O) to boost its presence in the high-growth U.S market. read more

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Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Vinay Dwivedi

Our Standards: The Thomson Reuters Trust Principles.