Equity markets on both sides of the border were feeling around for the bruises by the closing bell on Tuesday, as apprehensions over higher interest rates south of the border made themselves known.
The TSX trudged lower 207.54 points, or 1, to conclude the session Tuesday at 20,407.56.
The Canadian dollar shrank 0.38 cents to 73.39 cents U.S.
Energy let the side down badly Tuesday, with International Petroleum tumbling $1.02, or 7.8%, to $12.10, while Imperial Oil lost $4.57, or 6.7%, to $63.31.
Real-estate also had its problems, with Colliers International fading $13.81, or 9.7%, to $128.50, while RioCan REIT slid 52 cents, or 2.5%, to $20.40.
In financials, CI Financial handed back 94 cents, or 7%, to $12.49, while goeasy Ltd. chucked $3.10, or 3.4%, to $88.34.
Gold tried to lift things, with OceanaGold acquiring 20 cents, or 6.6%, to $3.23, while Osisko Gold Royalties jumping 41 cents, or 6.3%, to $23.67.
In materials, SSR Mining surged $1.11, or 5.8%, to $20.37, while Dundee Precious Metals picked up 46 cents, or 4.7%, to $10.31.
BlackBerry ripened 49 cents, or 9.3%, to $5.75, while HUT 8 Mining increased 13 cents, or 5.8%, to $2.37.
ON BAYSTREET
The TSX Venture Exchange faded 1.22 points to 607.43.
Eight of the 12 TSX subgroups lost ground, as energy took it on the chin 4.5%, real-estate lost 1.9%, and financials faltered 1.7%.
The four gainers were led by gold, zooming 4.2%, and materials, progressing 2%, and information technology, nicking up 0.6%.
ON WALLSTREET
Stocks tumbled on Tuesday as traders’ fears around contagion in the regional banking sector returned.
The Dow Jones Industrials plunged 367.24 points, or 1.1%, though off its lows of the day, to finish at 33,684.46.
The S&P 500 shed 48.28 points, or 1.2%, to 4,119.59.
The NASDAQ Composite let go of 132.09 points, or 1.1%, to 12,080.51.
Bank shares fell, as traders questioned the stability of smaller regional financial institutions after the crisis that engulfed Wall Street in March and brought about the end of Silicon Valley Bank and First Republic Bank. Regional banks PacWest and Western Alliance had trading paused after tumbling more than 20%.
Meanwhile, JPMorgan Chase’s shares shed 1%, giving back some of its gains from the previous session. A day earlier, JPMorgan shares rose after the takeover of embattled regional First Republic Bank. Other large banks including Goldman Sachs, Bank of America and Citigroup also dropped more than 2.5%.
The Fed’s two-day policy meeting, which kicked off Tuesday, is expected to conclude with the central bank announcing another quarter-point rate hike. Traders are reportedly pricing in 97% chance of a rate hike. Investors will be looking for clues on whether the Fed will keep rates steady after this meeting, or if it will further tighten monetary policy to fight inflation.
Weighing on sentiment Tuesday was word from Treasury that the country may hit the debt ceiling sooner than expected. Treasury Secretary Janet Yellen warned on Monday that the U.S. may run out of measures to pay its debts as early as June 1, earlier than the late July deadline Goldman was estimating.
Elsewhere, fresh numbers from the Job Openings and Labor Turnover Survey for March showed signs of a loosening job market.
Employment openings hit their lowest levels since April 2021. Orders for manufactured goods in March grew 0.9%, falling below expectations of a 1.3% increase.
Earnings season also continues this week, with Apple scheduled to announce its quarterly performance on Thursday.
Prices for the 10-year Treasury shot up, lowering yields to 3.42% from Monday’s 3.58%. Treasury prices and yields move in opposite directions.
Oil prices skidded $4.01 to $71.65 U.S. a barrel.
Gold prices regained $33.90 to $2,026.10 U.S. an ounce.
