(Analyst adds comment and description, updates prices)
* TSX ended 132.59 points or 0.6% lower at 21,461.93
* Technology drops 3.1%; Energy ends up 2.2% less
* US crude oil futures settle down 3.3%
* Material Group gains 1% by rising gold
TORONTO, Nov 10 (Businesshala) – Canada’s main stock index fell on Wednesday as investors worried that accelerating inflation could push central banks to raise interest rates faster than expected, with the index back from record highs a day earlier. Is.
The Toronto Stock Exchange’s S&P/TSX Composite Index closed 132.59 points, or 0.6%, down 132.59 points, or 0.6%, at 21,461.93 after five consecutive days of gains. Wall Street also closed lower.
To combat inflation, the Federal Reserve and the Bank of Canada “may be forced to raise rates at a rapid pace,” said Sid Mokhtari, a market technician at CIBC World Markets. “Money is not going to be as cheap as it used to be.”
US consumer prices rose at an annualized rate of 6.2% in October, the biggest gain in 31 years, as Americans paid more for gasoline and food.
“I don’t think this is going to change the secular picture for broader equities, but in the short term I would say you are getting a knee-jerk effect,” Mokhtari said.
On Tuesday, the Toronto market closed a record high of 21,594.92 as higher commodity prices and bullish corporate profits helped lower the market in recent weeks.
The technology sector fell 3.1% on Wednesday as bond yields jumped. Higher returns put a burden on companies with higher growth prospects, reducing the value of future cash flows.
Energy shares fell 2.2% under pressure from falling oil prices. US crude oil futures fell 3.3% to end at $81.34 a barrel.
Shares of Boyd Group Services Inc. fell 10.1% after the auto repair services company reported third-quarter adjusted profit below estimates.
Limiting the Toronto market’s decline was a 1% gain for the materials sector, which includes precious and base metal miners and fertilizer companies. This was driven by a rally in gold, which was considered a hedge against rising prices. (Reporting by Fergal Smith in Toronto Additional reporting by Amal S in Bengaluru Editing by Matthew Lewis)