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Forex trading idea
Toronto stocks drop as miners and energy stocks slide
- TSX closes down 1.3%
- Materials and energy lead the sectoral losses
- Canadian manufacturing activity lifts to a five-month high
Sept 3 (Reuters) - Canada's main stock index closed more than 1% lower on Tuesday, tracking declines in materials and energy stocks, ahead of the Bank of Canada's monetary policy decision on Wednesday.
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended down 303.73 points, or 1.3%, at 23,042.45, its worst day since Aug. 2.
Materials (.GSPTTMT) , opens new tab led sectoral losses with a 4.2% drop as gold prices declined. Copper prices fell to a two-week low and the energy sector (.SPTTEN) , opens new tab fell 2.1% after oil prices dropped more than 3% on news of sluggish economic growth in China.
China's manufacturing activity sank to a six-month low in August as factory gate prices tumbled and owners struggled for orders, an official survey showed.
At least nine major sectors pared losses. Healthcare (.GSPTTHC) , opens new tab and capped communications (.GSPTTTS) , opens new tab were the only outliers, rising 1% and 0.3%, respectively, with Bausch Health Companies' (BHC.TO) , opens new tab 3% gain supporting healthcare stocks.
On Wall Street, the main indexes fell more than 1% as investors assessed factory activity data that edged up in August from an eight-month low in July.
Markets will be watching the Bank of Canada's policy meeting on Wednesday, in which it is widely expected to lower its policy rate by 25 basis points for the third time in a row.
"Lending rates are still very high. So, to me, it's the start of an interest rate decreasing cycle that will continue going forward, until the Bank of Canada finds that neutral rate whatever that may be," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
Canadian manufacturing activity rose to a five-month high to 49.5 in August as production and new orders fell at slower rates.
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https://www.reuters.com/world/americas/tsx-futures-fall-oil-prices-decline-2024-09-03/
