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

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

12/16/2021 | 04:23pm EDT
FILE PHOTO: A sign board displaying Toronto Stock Exchange stock information is seen in Toronto

(Reuters) - Canada's main stock index reversed earlier gains to close lower on Thursday, as markets further parsed the implications of the U.S. Federal Reserve's plans to speed up the taper of its bond-buying program and its inflation expectations.

The Toronto Stock Exchange's S&P/TSX composite index closed down 29.38 points, or 0.14%, at 20,739.78.

Technology stocks led declines, losing 2.2%, with Lightspeed Commerce, Docebo and Converge Technology Solutions among the 10 biggest losers on the benchmark, tracking the tech-heavy Nasdaq's 2.5% decline in the U.S.

On Wednesday, the Fed said it would accelerate the pace of its tapering and laid out a scenario in which the pandemic, despite the Omicron surge, gives way to a benign set of economic conditions, but it dropped references to inflation as "transitory."

The Fed's policy statement lifted the TSX on Wednesday to its first positive close since Dec. 7..

"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 is causing "a real barbell effect," he added. "Inflation helps gold, commodities, financials ... technology is bearing the brunt."

Materials were the biggest gainers, climbing 2.15%, with mining companies MAG Silver, Pan American Silver and Silvercorp Metals rising the most, as spot silver added 1.7% to $22.44 an ounce and spot gold increased 1.2% to $1,797.95.

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

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

By Nichola Saminather


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) -0.18% 0.70883 Delayed Quote.-2.46%
BRITISH POUND / US DOLLAR (GBP/USD) -0.51% 1.21331 Delayed Quote.-9.75%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) -0.17% 0.7817 Delayed Quote.-1.04%
CONVERGE TECHNOLOGY SOLUTIONS CORP. -1.41% 7 Delayed Quote.-35.60%
DOCEBO INC. 2.45% 46.8 Delayed Quote.-44.86%
INDIAN RUPEE / US DOLLAR (INR/USD) -0.13% 0.01255 Delayed Quote.-5.85%
LIGHTSPEED COMMERCE INC. -2.30% 30.16 Delayed Quote.-40.96%
LONDON BRENT OIL -0.89% 98.33 Delayed Quote.24.53%
MAG SILVER CORP. -1.74% 17.54 Delayed Quote.-11.55%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -0.12% 0.64255 Delayed Quote.-6.33%
PAN AMERICAN SILVER CORP. -15.81% 22.73 Delayed Quote.-27.98%
S&P GSCI CRUDE OIL INDEX -1.53% 504.8228 Real-time Quote.21.45%
SILVER 0.16% 20.305 Delayed Quote.-11.61%
SILVERCORP METALS INC. -2.86% 3.4 Delayed Quote.-28.12%
WTI -1.15% 92.894 Delayed Quote.21.43%
Latest news "Economy & Forex"
07:40aFACTBOX-PARTS OF ENGLAND DECLARE A DROUGHT : what does it mean?
RE
07:36aWinter diesel shock looms as tanks dry up ahead of sanctions
RE
07:36aBiden advisers push early launch of his 2024 presidential campaign
RE
07:34aAmerican attorney convicted in UAE of money laundering will pay fine - lawyer
RE
07:32aU.S., world stocks upbeat on Fed view
RE
07:27aChina to accelerate disposal of smaller banks' bad loans
RE
07:26aCHINA FOREIGN MINISTRY : Will suspend engagement with lithuanian…
RE
07:26a'Accidents can happen at European nuclear plants too,' Russian ex-president says
RE
07:24aCHINA FOREIGN MINISTRY : Will sanction lithuanian vice transport…
RE
07:21aDollar set for weekly fall as markets reassess Fed rate hike bets
RE
Latest news "Economy & Forex"