S & P / TSX composite drops to end third consecutive week of losses amid Fed angst – .

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S & P / TSX composite drops to end third consecutive week of losses amid Fed angst – .


TORONTO – The rebound in the major Canadian stock index was short-lived as it pushed lower on Friday to end a third straight week of losses amid concerns about looming US Federal Reserve action.

The S & P / TSX Composite Index closed 128.76 points lower at 20,633.27 despite an intraday high of 20,825.21. The Toronto market got off to a good start to the morning after posting its best performance in 10 months on Thursday. He then lost ground throughout the session before recovering a bit as the fence approached.

The TSX is down 2.3 percent on the week, but is up 18.4 percent so far in 2021.

In New York, the Dow Jones Industrial Average was down 59.71 points to 34,580.08. The S&P 500 Index lost 38.67 points to 4,538.43, while the Nasdaq Composite Index lost 295.85 points or 1.9% to 15,085.47.

Investors have been nervous this week in response to more belligerent comments from the US central bank regarding accelerating cuts in bond purchases as a new variant of COVID-19 emerges and economic activity is slowing, said Greg Taylor, chief investment officer of Purpose Investments.

“The risk this week is that the Fed will make a policy error,” he said in an interview.

Taylor said investors have been nervous in recent days that the Fed will remove stimulus as the economy in the rest of the world slows a bit.

Canadian markets have been somewhat shielded by strong bank earnings.

The heavyweight financial sector was down slightly that day, led by a 4.4 percent drop in Canadian Western Bank. This was partially offset by increases of 2.4 and 2.1 percent respectively from BMO and CIBC, as the major Canadian banks concluded strong quarterly reports that each saw them increase their dividends.

Telecommunications was the only sector on the TSX to close higher on Friday.

The TSX’s widespread decline was led by healthcare and tech, which suffered even steeper declines in the United States

Tech fell 2.5% as shares of Hut 8 Mining Ltd. fell 10.8%, while Lightspeed Commerce Inc. fell 7.7% and Shopify Inc. fell 2.4%.

There was a disconnect in the sector’s move because bond yields were lower, which is generally a supportive move for these companies.

Big tech stocks have really come under pressure in recent days, as previous pandemic winners such as DocuSign Inc. suffered a 42% drop, Taylor said. 42.2

After starting the day up, energy fell 0.3 percent due to falling crude oil prices.

The January crude oil contract fell 24 cents to US $ 66.26 a barrel after climbing to US $ 69.22 in the morning. The January natural gas contract rose 7.6 cents to US $ 4.13 per mmBTU.

Suncor Energy Inc. and Cenovus Energy Inc. led the declines, losing 2.1 percent and 1.7 percent, respectively.

The Canadian dollar was trading at 78.05 US cents against 78.03 US cents on Thursday.

Materials also fell on falling copper prices, while gold strengthened, shares of Lithium Americas Corp. having lost 8.7 percent.

The February gold contract was up US $ 21.20 to US $ 1,783.90 an ounce and the March copper contract was down 3.2 cents to nearly $ 4.27 US per pound.

Earlier, the United States and Canada posted employment figures in November. The US non-farm payroll was disappointing as it increased 210,000 jobs, well below expectations of around 550,000 jobs. However, the unemployment rate fell to 4.2%, the lowest since February 2020.

In Canada, the unemployment rate fell to six percent as 153,7000 jobs were added as the share of the employed labor force with jobs hit an all-time high.

Taylor said the markets were at risk earlier in the week.

“We haven’t had a correction for a long time and we were due to some volatility. The question will be when will the buyers return?

This report by The Canadian Press was first published on December 3, 2021.

Companies in this story: (TSX: CVE, TSX: SU, TSX: CWB, TSX: CM, TSX: BMO, TSX: HUT, TSX: LSPD, TSX: SHOP, TSX: LAC, TSX: GSPTSE, TSX: CADUSD

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