Canada's main stock index fell on Tuesday as energy and financial stocks declined, with investors betting on an outsized rate hike from the Bank of Canada later this week.
The TSX fell 72.49 points to move into noon hour EDT on Tuesday at 19,198.36.
The Canadian dollar inched up 0.02 cents to 76.18 cents U.S.
Markets throughout North America were shuttered Monday for Labour Day.
Traders see a 94% chance of a 75-basis-points rate hike at the BoC policy meeting on Wednesday, lifting its policy rate into restrictive territory for the first time in two decades, but bets are split on whether a pause will follow.
Meanwhile, Canada's soaring house prices will decline sharply next year, but still not enough to make them affordable, Reuters polls showed.
ON BAYSTREET
The TSX Venture Exchange erased 1.8 points to 630.22.
All but one of the 12 TSX subgroups were lower midday, with health-care subsiding 2.2%, energy flailing 1.2%, and communications off 0.9%.
Only industrials held out against the tide, up 0.2%.
ON WALLSTREET
U.S. stocks fell on Tuesday, continuing a three-week losing trend, as bond rates surged, raising fears the Federal Reserve’s aggressive tightening campaign will end in pain for the economy.
The Dow Jones Industrials recovered 50.71 points to break for lunch at 31,369.15, climbing off lows of the day boosted by defensive stocks such as Johnson & Johnson and Coca-Cola.
The S&P 500 tallied 12.69 points to 3,936.98
The NASDAQ Composite eked up 9.67 points to 11,640.53.
The moves came after August ISM data Tuesday morning was stronger than expected, coming in at 56.9 versus expectations of 55.5. The report follows Friday’s jobs release, which also beat Wall Street’s expectations, showing a more solid U.S. economy than anticipated.
Treasury prices withered, raising yields to 3.34% from Friday’s 3.19%. Treasury prices and yields move in opposite direction.
Oil prices gained 62 cents to $87.49 U.S. a barrel.
Gold prices staggered $8.60 to $1,714.00 U.S. an ounce.
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