CANADA STOCKS-Toronto stock index drops to two-month closing low as inflation fears take hold

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* TSX ends 0.44% lower; down 2.5% in September

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* Posts lowest level since July 20

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* Consumer cyclical stocks at lowest level since March (update to close)

Sep 30 (Businesshala) – Canada’s main stock index fell for the third day in a row on Thursday as inflation fears persisted and hopes the US Federal Reserve will tighten policy in the coming months.

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The Toronto Stock Exchange’s S&P/TSX composite index ended the day down 88 points, or 0.44%, at 20,070.25, its lowest level since July 20.

The benchmark lost 2.5% and 0.5% in the third quarter of 2021, the worst three-month period since the first quarter of 2020 in the early days of the pandemic.

“The stock and bond markets have been taking inflation more seriously lately…

“Supply chain/logistics/commodity-driven inflation is likely to ease in the coming quarters, but ‘demand pull’ inflation may be more permanent as domestic balance sheets are stronger … and wage inflation and labor shortages become more prevalent.” has been.”

Wall Street also ended the day lower, closing its worst quarter since the start of 2020.

US bond yields eased but remained close to their highest level in months.

TSX’s consumer cyclical sector was the biggest loser, falling 1.9% to its lowest level since March, followed by a 1% decline in the industry.

High returns reduce the value of future cash flows, so they especially hurt stocks of companies with high growth prospects.

highlighted

* Bombardier Inc jumped 3.4%. The company on Thursday said it has secured a confirmed order of $534 million for 20 units of the upgraded variant of its Challenger 350 aircraft, its biggest business-jet deal this year.

* Rogers Communications Inc. dropped 0.8%. The company said late Wednesday that Chief Financial Officer Tony Staffieri has stepped down after more than a decade. (Reporting by Nicola Saminether in Toronto; Editing by Peter Cooney)

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