Insecurity worked its way into investors in Toronto Tuesday, on the eve of a bank rate decision in the morning. Losses were spread across the board.
The TSX Composite Index lost 115.70 to 29,315.23.
The Canadian dollar gained 0.15 cents to 72.74 cents U.S.
The BoC is widely expected to cut by a quarter point tomorrow, as a weakening labour market and slowing economic activity increase pressure on the central bank to resume its cycle of lowering rates.
Canada's antitrust regulator said it would review the proposed $53-billion merger of miners Anglo American and Teck Resources, which would be the second-largest merger in mining if approved.
Teck shares dived $2.48, or 4.3%, to $55.31
Gold stocks fell with New Gold down 42 cents, or 4.5%, to $8.84, Orla Mining was off $1.79, or 10.2%, to $15.81, and Alamos Gold down $2.61, or 5.7%, to $43.43
Bausch Health fell 58 cents, or 5.9%, to $9.31, dragging on healthcare stocks, while Chartwell Retirement Residences was down 20 cents, or 1%, to $19.08.
Offsetting losses, energy index added 1.3%, with Vermillion Energy gained 33 cents, or 3.2%, to $10.72, and Parex Resources was up 68 cents, or 3.7%, to $18.87.
Economically speaking, Statistics Canada said the Consumer Price Index (CPI) rose 1.9% year over year in August, up from a 1.7% increase in July. On a seasonally adjusted monthly basis, the CPI rose 0.2% in August.
Canada Mortgage and Housing Corporation reported housing starts The six-month trend in housing starts increased (1.6%) in August (267,259 units).
ON BAYSTREET
The TSX Venture Exchange surrendered 16.71 points, or 1.9%, to 876.27.
All but two of the 12 subgroups were lower, with health-care hesitating 2.9%, while gold and materials doffing 1.8%, each.
The lone gainers were in energy, ahead 2.5%, and information technology, inching up 0.2%.
ON WALLSTREET
Stocks edged slightly lower on Tuesday as investors took in profits ahead of a highly-awaited Federal Reserve interest rate decision.
The Dow Jones Industrials sank 125.18 points to 45,758.27.
The S&P 500 retreated 8.52 points from Monday’s record high to 6,606.76 Tuesday.
The tech-heavy NASDAQ index eased 14.79 points to 22,333.96.
Key bull market leaders declined, with shares of Nvidia down more than 1.6%. Palantir, Microsoft and Google parent Alphabet also pulled back.
The two-day Fed meeting, which kicked off on Tuesday, is expected to result in a rate cut for the first time since December. Interest rate futures are pricing in a 100% certainty of at least a quarter-point rate cut.
What investors are watching most is the central bank’s forecast for rates for the rest of the year and whether voting members are expecting one more additional cut or two more before 2025 ends.
Traders will also closely monitor Fed Chair Jerome Powell’s subsequent press conference for any clues on the future of monetary policy.
The meeting comes with some political tension as well after the Senate confirmed President Donald Trump’s pick to join the central bank, Stephen Miran. The president is also attempting to remove Fed Governor Lisa Cook, who is voting at the meeting with Miran.
Details about the deal on the social media platform come after U.S. Treasury Secretary Scott Bessent said Monday that the U.S. and China have reached a “framework” deal for TikTok, just days ahead of a Wednesday deadline to either divest TikTok’s U.S. business or shut down the social media app in the country.
Investors remain on edge about the so-called reciprocal tariffs set to take effect in November.
Bessent said during an interview on Tuesday that he expects further talks to happen before that deadline, and that “the Chinese now sense that a trade deal is possible” after U.S. and Chinese officials concluded two days of talks on Monday.
President Donald Trump also gave a positive description of the trade discussions on Monday, which led U.S. stocks to rally and pushed the S&P 500 to close above 6,600 for the first time.
U.S. Trade Representative Jamieson Greer said on Monday that trade discussions had been “deferred” to another time, however, given the intense focus on TikTok.
Prices for 10-year Treasury regained ground, lowering rates back to Monday’s 4.03%. Treasury prices and yields move in opposite directions.
Oil prices pushed higher $1.28 to $64.58 U.S. a barrel.
Gold prices grew $7.90 to $3,726.90 U.S. an ounce.
