Canada’s main stock index was subdued on Monday, with losses in mining and technology stocks countering optimism following signs of a slowdown in the pace of U.S. interest rate hikes.
The Toronto Stock Exchange’s S&P/TSX composite index edged down 0.1% at 18,835.65. The index hit a two-week high at the open.
Wall Street’s main indexes were mixed, with the benchmark S&P 500 up 0.1% and tech-heavy Nasdaq falling 1% after data showed U.S. business activity contracted for a fourth consecutive month in October.
Canada’s main stock index rallied on Friday along with U.S. shares after a report said the Federal Reserve will likely debate on a smaller interest rate hike in December.
Focus will be on the Bank of Canada’s policy decision on Wednesday, with traders pricing in a nearly 75% chance of another supersized 75 bps rate hike.
“I don’t think the Bank of Canada, like the Federal Reserve, cares about the damage that they could be causing. They’re willing to put the economy into some sort of a recession to fight inflation,” said Allan Small, senior investment adviser at the Allan Small Financial Group with iA Private Wealth.
Energy stocks rose almost 1% as crude prices gave up earlier losses. Brent crude was flat after falling more than $2 a barrel on concerns about demand from China.
Mining stocks were among the biggest drags on the main index as precious metal prices slid more than 1% against the dollar.
Among single stocks, NFI Group fell 15.3% after the bus manufacturer cut fiscal 2022 revenue guidance and warned of margin pressure from higher inflation.
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