Stocks in Canada’s largest centre were dragged lower by technology and commodity-linked stocks on Monday as investors fretted over the prospects of a global recession next year after major central banks stuck to their hawkish stance last week.
The TSX Composite lurched deeper into the red 105.34 points to pause for lunch Monday at 19,337.94.
The Canadian dollar moved upward 0.16 cents at 73.21 cents U.S.
The benchmark Canadian index has outperformed the U.S. S&P 500 index so far this year, losing 8.6% versus a 19.5% drop in the U.S. benchmark.
Tech stocks with Shopify amongst the biggest drags, down 89 cents, or 1.8%, to $48.51.
Among individual stocks, Dye & Durham Limited scaled the top of the index, gaining $1.83, or 15.2%, to $13.84, after the software maker said it is significantly expanding its legal practice management capabilities with the addition of litigation workflow software.
On the economic calendar, Statistics Canada said its raw materials price index for November fell 0.8% on a monthly basis and increased 8.0% year over year, while the agency’s industrial product price index declined 0.4% month over month and increased 9.7% on a year-over-year basis.
Meanwhile, the Bank of Canada governor told the Globe and Mail that the central bank missed the mark on rising inflation but a turnaround is near.
ON BAYSTREET
The TSX Venture Exchange tailed off 7.76 points, or 1.4%, to 568.50.
All but one of the 12 subgroups lost ground, with health-care down 2.6%, materials retreating 1.3%, and information technology off 1%.
The lone positive subgroup was consumer staples, up 0.8%.
ON WALLSTREET
Stocks fell Monday after the major averages posted their second straight week of losses for the first time since September as investors weighed recession fears.
The Dow Jones Industrials fell 71.18 points to move into noon hour EST at 32,849.28, offset slightly by gains in 3M, Walgreens Boots Alliance and Travelers, which all rose more than 1%.
The S&P 500 subsided 23.34 points to 3,829.02.
The NASDAQ Composite Index retreated 87 points to 10,618.42, weighed down by shares of Amazon, which slipped 3%.
Stocks are set to round out a dismal monthly performance in December. On Friday, the Dow fell 281.76 points, or 0.9%. The 30-stock index shed 1.66% for the week, bringing its monthly losses to 4.83%. The S&P 500 dropped 1.1% and tumbled 2.1% for the week, upping its monthly declines to 5.58%. The NASDAQ Composite slumped 1% on Friday and 2.7% for the week. It’s down 6.7% this month.
Investors will also be watching for a few earnings reports due later in the week. FedEx and Nike are both scheduled to report earnings results on Tuesday after market close. As recession fears mount, earnings results will become more of a focus.
Builder sentiment dropped two points to 31 in December, according to the National Association of Home Builders survey. The report marked the twelfth consecutive monthly decline for the index.
Prices for the 10-year Treasury tumbled, raising yields to 3.60% from Friday’s 3.49%. Treasury prices and yields move in opposite directions.
Oil prices regained $1.36 to $75.65 U.S. a barrel.
Gold prices stumbled $2.80 to $1,797.40 U.S. an ounce.
