Toronto index reverses gains to close lower as markets analyze Fed statement

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  • The TSX closes down 29.38 points, or 0.14%, at 20,739.78
  • Tech stocks lead declines on Fed inflation comments on Wednesday
  • Mining stocks rise 1.9%, following higher gold and silver prices

Dec. 16 (Reuters) – The main Canadian stock index reversed its earlier gains to close lower on Thursday, as markets further analyzed the implications of the U.S. Federal Reserve’s plans to accelerate the cut to its buying program. bonds and its inflation expectations.

The Toronto Stock Exchange’s S & P / TSX Composite Index (.GSPTSE) closed down 29.38 points, or 0.14%, at 20,739.78.

Tech stocks led the declines, losing 2.2%, with Lightspeed Commerce (LSPD.TO), Docebo (DCBO.TO) and Converge Technology Solutions (CTS.TO) among the benchmark 10 biggest losers , according to Nasdaq (. IXIC) 2.5% drop in the United States

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On Wednesday, the Fed said it would step up the pace of its reduction and presented a scenario in which the pandemic, despite Omicron’s push, gives way to a set of benign economic conditions, but it dropped references to inflation as “transitory”. Read more

The Fed’s policy statement took the TSX on Wednesday to its first positive close since December 7. read more .

“What’s happening today is the sobering effect of what (Fed Chairman Jerome) Powell said yesterday,” said Philip Petursson, chief investment strategist at IG Wealth Management.

This causes “a real barbell effect”, he added. “Inflation helps gold, commodities, financial services … technology is paying the price.”

Materials were the biggest winners, climbing 2.15%, with mining companies MAG Silver (MAG.TO), Pan American Silver (PAAS.TO) and Silvercorp Metals (SVM.TO) increasing the most, silver spot rising 1.7% to $ 22.44 per year. an ounce and spot gold rose 1.2% to $ 1,797.95.

Energy stocks were flat, despite a 1.6% rise in the price of crude oil to $ 72.03 per barrel.

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Reporting by Nichola Saminather in Toronto; Additional reporting by Amal S in Bangalore; Editing by Vinay Dwivedi and Leslie Adler

Our Standards: Thomson Reuters Trust Principles.


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