(Toronto) Canada’s main stock index closed lower on Monday, as a broad decline in several sectors overshadowed gains in energy stocks, while U.S. stock markets also declined.
Updated yesterday at 6:08 p.m.
Markets fell as a whole as investors continued to digest the employment figures released Friday in the United States, which forced a reconsideration of the speed with which the American Federal Reserve will reduce its rates, indicated Kathrin Forrest, specialist equity investments at Capital Group.
“It was undoubtedly one of the big news, certainly today, but also last week,” she stressed.
She noted how signs of a still-robust U.S. economy helped push yields on 10-year U.S. Treasuries from 3.71% a week ago to more than 4% on Monday.
“It’s quite significant. »
The shift means markets are now betting on a quarter-point rate cut in the next U.S. Fed decision, rather than a deeper cut.
The outlook helped push the Dow Jones Industrial Average down 398.51 points to 41,954.24. The S&P 500 index lost 55.13 points to 5,695.94, while the NASDAQ Composite Index fell 213.95 points to 17,923.90.
Meanwhile, the S&P/TSX Composite Index lost 60.12 points to close at 24,102.71.
The rise in oil prices, caused by fears of an escalation of the conflict in the Middle East, has also worried the American market.
The main gains in the markets were energy companies, as crude prices continued to rise due to instability in the Middle East.
On the New York Mercantile Exchange, the November crude oil contract rose US$2.76 to US$77.14 a barrel on Monday, after moving away from the start of the month level of US$70 the barrel.
Rising crude prices helped push the S&P/TSX energy index up 1.9%. The increase includes a 3.3% gain for Canadian Natural Resources, which also announced the purchase of Chevron Canada’s interests in the Athabasca oil sands project and the Duvernay shale for US6.5 billion.
Utilities suffered some of the biggest losses, with the S&P/TSX subindex falling 1.6%.
Shares of emergency generator manufacturer Generac jumped (+8.52%) after Hurricane Milton was upgraded to Category 5 on Monday by the US Hurricane Center (NGC). .
Investors will have more to look at next week to predict the movement of rates, as Canada and the United States are due to release their inflation data on October 15.
“Inflation, in the United States in particular, absolutely deserves to be monitored,” argued Mr.me Forrest.
On the currency market, the Canadian dollar traded at 73.48 US cents on Monday compared to 73.65 US cents on Friday.
The price of natural gas fell by 10 US cents to US$2.75 per million BTU. Gold fell US$1.80 to US$2,666 per ounce and copper remained unchanged at US$4.57 per pound.
The TSX falling
The main Canadian stock index fell slightly late Monday morning, hurt by losses in the public services sector.
The S&P/TSX composite index lost 8.52 points to 24,154.31.
The Canadian dollar traded at 73.47 US cents compared to 73.65 US cents on Friday.
