TSX slips to 3-week low as Fed minutes weigh on sentiment
The Toronto Stock Exchange’s S&P/TSX Composite Index ended down 142.23 points, or 0.7%, at 21,788.60, its lowest closing level since March 17.
U.S. stock markets also fell after minutes from the Federal Reserve’s March meeting revealed plans for how the central bank plans to reduce its bond holdings.
“It’s a bad mood. The stock market doesn’t like rising interest rates, too high inflation, recession and war,” said Barry Schwartz, portfolio manager at Baskin Financial Services.
Russian forces bombarded Ukrainian towns as the United States imposed more sanctions after killings of civilians widely condemned as war crimes and Ukraine’s president called for a decisive Western response amid divisions in Europe.
The technology sector was the biggest decline among the 11 major sectors in Canada, with a decline of 3.3%. Higher interest rates reduce the value to investors of future cash flows that technology and other high-growth sectors are expected to produce.
Energy fell 1.5% due to falling oil prices. U.S. crude oil futures settled down 5.6% to $96.23 a barrel after major consuming nations said they would release oil from reserves to counter tighter supply .
The heavily weighted Financials group lost nearly 1% less, while Industrials ended down 0.8%.
(Reporting by Fergal Smith; Additional reporting by Devik Jain in Bengaluru; Editing by Grant McCool)
By Fergal Smith