Canada's main stock index fell to a near three-week low on Monday in a broad-based selloff led by cannabis, energy and financial stocks, as investors remained nervous over the pace of rate hikes by major central banks and a potential recession.
The TSX tumbled 204.06 points to break for lunch Monday at 19,907.32,
The Canadian dollar lagged 0.22 cents to 76.70 cents U.S.
The tech sector was dragged by a slide of 19 cents, or 6.3%, in Hut 8 Mining and a 3.7% fall in Lightspeed Commerce. Hut 8 entered noon hour at $2.81, while Lightspeed broke for lunch at $25.22.
Liquor and cannabis retailer SNDL said on Monday it would buy pot products maker Valens Company Inc for about $138 million. SNDL handed back 17 cents, or 5.9%, to $2.73, while Valens dipped 13 cents, or 10.4%, to $1.12.
On the economic front, Statistics Canada said new home prices for Canada increased 0.1% in July compared with June.
The agency says it was the smallest increase since June 2020 and below the average increases witnessed in the first two quarters of 2022 (+1.1% in the first quarter and +0.3% in the second quarter).
StatsCan concluded prices were up in five of the 27 census metropolitan areas surveyed, unchanged in 17 and down in five.
ON BAYSTREET
The TSX Venture Exchange surrendered 11.04 points, or 1.5%, to 638.87.
All but two of the 12 TSX subgroups were lower, as health-care subsided 2.9%, while consumer discretionary and financial stocks each demurred 1.6%.
The two gainers proved to be gold, up 0.8%, and materials, ahead 0.5%.
ON WALLSTREET
U.S. stocks fell Monday as the Wall Street summer rally fizzled and fears of aggressive interest rate hikes returned to Wall Street.
The Dow Jones Industrials unloaded 445.89 points, or 1.3%, to 33,256.68.
The S&P 500 dropped 67.38 points, or 1.6%, to 4,161.10.
The NASDAQ Composite tumbled 250.57 points, or 2%, to 12,454.65.
Investors are anticipating what could be a volatile week of trading ahead of Federal Reserve Chairman Jerome Powell’s latest comments on inflation at the central bank’s annual Jackson Hole economic symposium.
Tech stocks declined on concerns over more aggressive rate hikes from the Fed. Amazon fell 2%.
Semiconductor stocks dropped with Nvidia down 2.4%. Shares of Netflix were 4% lower following a downgrade to sell from CFRA.
Treasury prices retreated a bit, raising yields to 3.03% from Friday’s 2.98%. Treasury prices and yields move in opposite direction.
Oil prices gave up 77 cents to $90.00 U.S. a barrel.
Gold prices fell $13.50 to $1,748.20 U.S. an ounce.
Related Stories
