Canada Stocks: Toronto stocks fall ahead of Fed's Powell comments

Aya Gold & Silver (Quebec)

30/09/2024 16:02

(Updated at 10:24 a.m. ET/ 1424 GMT)
    By Nikhil Sharma
       Sept 30 (Reuters) - Canada's main stock index fell on
Monday, hurt by mining stocks, as investors awaited the Federal
Reserve Chair Jerome Powell's speech later in a day to get clues
on U.S. policy outlook.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  was down 0.26%, at 23,894.19, and was set to extend
its fall from the previous session
        The Canadian market also took cues from Wall Street,
where the benchmark S&P 500  .SPX  was down over 0.1%.  .N 
  
    As all eyes were on Jerome Powell's comments at 1355 ET,
economists have said a mistake in setting interest rates during
the last phase of Fed's inflation battle could impair the
country's economy over the next year.
    Markets unanimously see the Fed to further lower its
borrowing costs at its November policy meeting, after slashing
rates by a hefty 50 basis points recently.  0#FEDWATCH 
    "It's not atypical to see a little bit of a pullback the
last trading day of the month, especially after such a strength"
last week, said Angelo Kourkafas, investment strategist at
Edward Jones Investments.
    Slight hesitation ahead of major employment data may also be
contributing factor, Kourkafas added.
        August's job openings report and September's pivotal
payrolls figure, along with final business activity estimates
will also be on investors radar this week.
  
        The Bank of Canada is also expected to boost the
country's weak economy by 
    cutting interest rates
     for the fourth time this year at its October meeting.
 0#BOCWATCH 
  
        The TSX has gained 14% this year, partly benefiting from
the policy easing cycle in the U.S. and Canada. 
  
    The materials sector  .GSPTTMT  led the sectoral losses and
fell 1.4% as gold prices fell but were still set for its biggest
quarterly gain in more than eight years.  GOL/  
    On the TSX, International Petroleum Corp​​  IPCO.TO , First
Majestic Silver Corp​  AG.TO  and Aya Gold & Silver Inc​
 AYA.TO  were the worst hit, down between 4.4% and 5.2%.



 (Reporting by Nikhil Sharma in Bengaluru; Editing by Leroy Leo)
 ((Nikhil.Sharma@thomsonreuters.com))