News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexCryptocurrenciesCybersecurityPress Releases

TSX falls 1% as recession risk pressures commodity markets

07/05/2022 | 05:00pm EDT

(New throughout, udpates prices, market activity and comments to close)

* TSX ends down 194.70 points, or 1%, at 18,834.16

* Touches its lowest intraday level since March 2021

* Energy sector tumbles 6.8%; oil settles 8.2% lower

* Materials group loses 4.4%

TORONTO, July 5 (Reuters) - Canada's main stock index fell on Tuesday, caught up in broader financial market volatility as global recession worries came to the fore, with energy stocks diving along with oil prices.

The Toronto Stock Exchange's S&P/TSX composite index ended down 194.70 points, or 1%, at 18,834.16, after touching its lowest intraday level since March 2021 at 18,520.38.

Overall, the global mood was downbeat with investors selling stocks, commodities and emerging markets assets while seeking safety in government bonds as surging European gas prices fueled worries about a further upswing in inflation and aggressive central bank actions to tame it.

"The risk is that inflation expectations are rising fast and driving second-round inflationary effects that will require central banks to tighten even more than they or the market currently conceives," analysts at Saxo Bank wrote in a note.

Energy stocks tumbled 6.8%, tracking sharp losses in crude prices on growing fears of a global recession and lockdowns in China that could slash demand.

U.S. crude oil futures settled 8.2% lower at $99.50 a barrel.

The materials sector, which includes precious and base metals miners and fertilizer companies, declined 4.4% as gold and copper prices tumbled.

Together, energy and materials account for 30% of the TSX's market capitalization.

Heavily-weighted financials were also a drag, ending 0.4% lower.

In contrast, the technology group advanced 3.6%, helped by a gain of 9.9% for shares of e-commerce giant Shopify Inc as bond yields fell. (Reporting by Fergal Smith; Additional reporting by Sruthi Shankar in Bengaluru; Editing by David Gregorio)


© Reuters 2022
Latest news "Economy & Forex"
11:23aFED'S BARKIN : "A lot of time" before September rate decision needs to be made
RE
11:21aRussia's idle primary oil refining capacity revised down 11% for Sept
RE
11:19aEU backs changing monkeypox vaccine injection method to boost supply
RE
11:18aUkraine's sovereign debt freeze to trigger CDS payments
RE
11:15aAs Iraqi protesters rally, political deadlock leaves families without cash
RE
11:06aChina extends NEV purchase tax exemption worth 100 billion yuan
RE
11:01aUK police officer who murdered woman charged with further sex crimes
RE
10:59aNigeria's Buhari worried over large scale crude oil theft
RE
10:53aPreem plans September maintenance at oil refinery in Sweden
RE
10:52aInvictus Energy expects to drill first Zimbabwe exploration well in coming weeks
RE
Latest news "Economy & Forex"