TSX Sinks by Bell, After Gains Much of Tuesday

Colliers, CIBC in Focus

TSX raised the blood pressure of market watchers Tuesday by flirting with higher readings after consecutive days in the red, but fell flat below breakeven by session’s end.

The TSX Composite wilted 19.13 points, by Tuesday’s close to 18,307.91.

The Canadian dollar dipped 0.12 cents to 72.81 cents U.S.

Colliers International Group fell four dollars, or 3.1%, the most on the TSX, to $127.03, after Scotiabank assumed the coverage on the stock with sector perform rating versus sector outperform.

Elsewhere in real-estate, RioCan REIT units retreated 28 cents, or 1.5%, to $18.08.

Financial stocks also slid, on the back of Brookfield Asset Management, down $1.58, or 2.7%, to $57.06, while CIBC shed $1.51, or 2.5%, to $59.76.

In industrials, WSP Global docked $5.24, or 3.5%, to $144.01, while Bombardier shares lost $1.01, or 3.7%, to $26.29.

Energy stocks tried to balance things out, as Athabasca Oil gained 14 cents, or 7.5%, to $2.02, while Vermilion Energy grabbed $2.59, or 10.3%, to $27.91.

In materials, Lundin Mining advanced 21 cents, or 3.3%, to $6.49, while Osisko Mining acquired nine cents, or 3.8%, to $2.47.

Gold was also on the march, with Centerra Gold up 33 cents, or 6.3%, to $5.55, while Sandstorm Gold jumped 27 cents, or 3.7%, to $7.64.

As of Tuesday’s open ,the TSX has lost 5.2% so far this month and is headed for a second straight month of decline. This, as worries about the economic impact of central bank tightening overshadowed domestic data showing an easing of inflation pressures.

Bank of Canada Governor Tiff Macklem said on Monday that the central bank must hike interest rates to slow spending and give the economy time to catch up.

The central bank has lifted rates by 300 basis points in just six months, with traders pricing in another 50-bps hike next month.

ON BAYSTREET

The TSX Venture Exchange recovered 6.52 points, or 1.2%, to 573.91.

The 12 TSX subgroups were equally served by gainers and losers, as energy jumped 2.2%, materials soared 1.4%, and gold shone 0.8% brighter.

The half-dozen laggards were weighed most by financials, down 1%, industrials, off 0.7%, and real-estate, giving back 0.6%.

ON WALLSTREET

The S&P 500 fell deeper into a bear market on Tuesday after setting a new 2022 low, while the benchmark 10-year Treasury yield continued to climb to levels not seen in at least a decade.

The Dow Jones Industrials headed south 125.82 points by the closing bell Tuesday to 29,134.99.

The S&P 500 dipped 7.75 points to 3,647.29

The NASDAQ Composite stayed afloat 26.58 points to 10,829.50.

The S&P 500 is now 24.3% below its record set in January, while the Dow is 21.2% below its all-time high. The NASDAQ has fallen more than 33% since hitting a record in November.

A rally in the British pound also fizzled, with sterling trading just 0.4% higher at about $1.07 against the dollar. The pound earlier rose more than 1% against the U.S. dollar, in an attempt to rebound from an all-time low set earlier in the week.

The moves come after five straight days of losses for stocks, with the S&P 500 closing at its lowest level since 2020.

The Dow dropped more than 300 points on Monday, putting it in a bear market after falling more than 20% below its record high. The 30-stock average also posted its lowest closing level since late 2020.

Treasury prices lost ground, pushing up yields to 3.97% from Monday’s 3.90%. Treasury prices and yields move in opposite direction.

Oil prices regained $1.83 to $78.54 U.S. a barrel.

Gold prices jumped $2.30 to $1,635.70 U.S. an ounce.