Equities in Toronto opened lower on Thursday, dragged by weakness in health-care and energy shares, as concerns around soaring inflation and aggressive policy tightening by global central banks dented sentiment.
The S&P/TSX gave back 117.59 points to open for business Thursday at 20,674.84
The Canadian dollar decreased 0.25 cents to 79.40 cents U.S.
The Canadian dollar dipped 0.07 cents to 79.58 cents U.S.
CIBC raised the target price on Canadian Natural Resources to $95.00 from $90.00. Natural Resources shares dropped $1.15, or 1.3%, to $84.63.
CIBC cut the rating on Enghouse Systems to neutral from outperform. Enghouse stumbled $1.38, or 5.1%, to $25.76.
CIBC raises target price on Suncor Energy to $65.00 from $60.00. Suncor shares faded 27 cents to $53.06.
Economists say the Bank of Canada has signaled plans to race ahead with a series of oversized hikes to curb inflation, raising the risk of plunging the economy into a recession, though worth it if it keeps rapid price rises from becoming entrenched.
ON BAYSTREET
The TSX Venture Exchange lost 6.23 points to 717.96.
All but two of the 12 TSX subgroups were negative to begin the session, with health-care descending 2.1%, gold duller in price 1.6%, and energy 1.3% less energetic.
Only two defied the tide, with consumer staples dropping 0.4%, and utilities off 0.3%.
ON WALLSTREET
Stocks fell Thursday morning as investors monitored the health of the economy ahead of a key inflation report.
The Dow Jones Industrials were negative 147.5 points to open Thursday at 32,763.40.
The S&P 500 handed back 18.87 points, to 4,096.90.
The NASDAQ Composite eased 52.85 points to 12,086.27.
Casino stocks were some of the worst performers in the S&P 500, with Las Vegas Sands falling 3.4% and Caesars Entertainment falling 2.3%. Chinese tech stocks reversed recent gains, with Pinduoduo falling more than 6%.
Shares of Five Below dropped more than 5% after first-quarter sales came in softer than anticipated and the retailer shared weak guidance for the current period.
Tesla rose more than 2% after UBS upgraded the stock to buy. The firm also said the electric vehicle maker can rally more than 50% from current levels.
Investors have been assessing the health of the U.S. economy, with a key inflation report due out on Friday. The Federal Reserve has started hiking rates in an attempt to cool inflation without tipping the economic into recession.
Shares of Target were little changed after the company announced a dividend hike. The payout raise comes after a disappointing first quarter and a profit warning for the second quarter from the retail giant.
Initial jobless claims rose to 229,000 last week, worse than the 210,000 expected.
Treasury prices shed strength, raising yields to 3.04% from Wednesday’s 3.02%. Treasury prices and yields move in opposite directions.
Oil prices dropped 36 cents to $121.75 U.S. a barrel.
Gold prices slouched $8.90 to $1,847.60 U.S. an ounce.
