Canada's resources-heavy main stock index was set to extend losses on Thursday as a slight pullback in oil prices pressured energy shares, while worries around stubborn inflation and the aggressive interest rate hikes weighed on
sentiment.
The S&P/TSX lost 97.16 points to break for lunch Thursday at 20,695.27
The Canadian dollar decreased 0.56 cents to 79.09 cents U.S.
Pot stocks were the worst off, including Canopy Growth, off 19 cents, or 3.5%, to $5.00, Tilray Brands, down 21 cents, or 4.3%, to $4.69, and
Aurora Cannabis let go of six cents, or 2.8%, to $1.92.
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 dropped 10.33 points to 713.86.
All but two of the 12 TSX subgroups were negative middat, with health-care descending 2.9%, gold duller in price 2%, and materials tailed off 1.2%.
Utilities poked ahead 0.3%, while consumer staples, were up 0.1%.
ON WALLSTREET
Stocks were modestly lower on Thursday as investors monitored the health of the economy ahead of a key inflation report.
The Dow Jones Industrials were negative 129.29 points midday to 32,781.61.
The S&P 500 handed back 20.85 points, to 4,094.92.
The NASDAQ Composite fell 66.72 points to 12,019.55.
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.
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.
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.
Initial jobless claims rose to 229,000 last week, worse than the 210,000 expected.
Treasury prices shed strength, raising yields to 3.05% from Wednesday’s 3.02%. Treasury prices and yields move in opposite directions.
Oil prices dropped 60 cents to $121.51 U.S. a barrel.
Gold prices slipped $9.50 to $1,847 U.S. an ounce.
Inflation Suspense Weighs on Stocks
