August 04, 2023 (MLN): Canada's main stock index fell to a three-week low on Thursday as higher bond yields pressured the technology and utilities sectors and the outlook of some high-profile companies, such as Nutrien Ltd, disappointed investors, as Reuters reported.
The Toronto Stock Exchange's S&P/TSX composite index ended down 97.47 points, or 0.5%, at 20,120.74, its lowest closing level since July 12.
"It's getting caught up a lot in this global decline," said Colin Cieszynski, chief market strategist at SIA Wealth Management.
Wall Street closed nearly flat after a choppy session, as investors weighed economic data and earnings against rising bond yields following Fitch's downgrade of the top-tier U.S. credit rating.
The U.S. 10-year Treasury yield, a global benchmark, touched a nine-month high at 4.198% but had dipped below 4.194% in late afternoon trade.
"We are getting into August anyways which is a seasonally weaker and more volatile time of the year for stocks," Cieszynski said.
"The Fitch Ratings downgrade of the U.S. is getting the blame but to me, it is more like the spark that kicked off a correction that was probably overdue anyways."
The Toronto market's technology sector fell 1.5% and utilities were down 2.6%, hitting its lowest level since July last year.
Heavily weighted financials and the materials group, which includes precious and base metals miners and fertilizer companies, each declined 0.6%.
Nutrien shares fell 4% after the world's biggest fertilizer firm forecast full-year profit below analysts' estimates.
Canada Goose Holdings also disappointed Wall Street with its forecast for current-quarter sales.
Shares of the luxury apparel brand fell 3.1%, while Bombardier Inc shares were down 8.5% as the company fell short on free cash flow.
The energy sector was a bright spot, gaining 1.5%, as oil settled 2.6% higher at $81.55 a barrel. Oil got a lift from steps taken by Saudi Arabia and Russia to keep supplies tight into September.
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Posted on: 2023-08-04T11:50:49+05:00
