Canada Stocks: TSX extends losses as recession worries weigh

Ballard Power Systems

19/01/2023 16:18

(Adds comments, details; updates prices)

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      Gold miners gain 1.7%
    

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      Investors track retail sales data due on Friday 
    

  
    By Shristi  Achar A and Johann M  Cherian
       Jan 19 (Reuters) - Canada's main stock index extended
losses for the second straight session on Thursday, dragged down
by healthcare and industrial stocks as weak U.S. economic data
added to fears of a looming recession.
    At 10:52 a.m. ET (1552 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was down 72.27 points, or
0.35%, at 20,303.96.
    The healthcare index  .GSPTTHC  fell 1.4%. with cannabis
producer Tilray Brands Inc  TLRY.TO  dropping 3.9% and peers
Canopy Growth  WEED.TO  and Cronos Group  CRON.TO  sliding 2.0%
and 2.1%, respectively.
    Industrials  .GSPTTIN  were the biggest drag in a
broad-based decline.
    Investors around the globe were rattled following a slew of
weak economic data from the United States on Tuesday reignited
fears of a global recession, with sentiment also taking a knock
from hawkish commentary by Federal Reserve policymakers.
 MKTS/GLOB 
    The TSX snapped its longest winning streak since October
2021 in the previous session, taking a breather from a sharp
rally since the start of the year on hopes of less aggressive
monetary policy by central banks. 
    Money markets see a 62.2% probability of a 25 basis point
rate hike by the Bank of Canada next week.  0#BOCWATCH 
    Investors eyed retail sales data due on Friday at 8:30 am ET
for further cues on the strength of the Canadian economy.
    "Retail sales are coming out tomorrow and they are about to
be negative. That probably could be affecting (markets) in the
near term as they came weaker in the U.S. and are expected to be
weaker in Canada," said Kevin Headland, co-chief investment
strategist at Manulife Investment Management.
    Capping losses on the index, gold miners  .SPTTGD  gained
1.7% tracking firm gold prices  XAU= .  GOL/ 
    Shares of silver miner First Majestic Silver Corp  FR.TO 
dropped 2.8% on lower fourth-quarter production, bucking a
broader rally in precious metal miners.  urn:newsml:reuters.com:*:nNFC8wnzHs
 (Reporting by Shristi Achar A and Johann M Cherian in
Bengaluru; Editing by Sriraj Kalluvila)
 ((Shristi.AcharA@thomsonreuters.com;))