Canada Stocks: Toronto stocks drop as miners and energy stocks slide

Bausch Health Companies

03/09/2024 22:04

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      TSX closes down 1.3%
    

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      Materials and energy lead the sectoral losses
    

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      Canadian manufacturing activity lifts to a five-month high
    

  
 (Updates with closing stock numbers)
    By Nikhil Sharma and Divya Rajagopal
       Sept 3 (Reuters) - Canada's main stock index closed more
than 1% lower on Tuesday, tracking declines in materials and
energy stocks, ahead of the Bank of Canada's monetary policy
decision on Wednesday.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended down 303.73 points, or 1.3%, at 23,042.45, its
worst day since Aug. 2.
    Materials  .GSPTTMT  led sectoral losses with a 4.2% drop as
gold prices declined. Copper prices fell to a two-week low
 GOL/   MET/L  and the energy sector  .SPTTEN  fell 2.1% after
oil prices dropped more than 3% on news of sluggish economic
growth in China.
    China's manufacturing activity sank to a six-month low in
August as factory gate prices tumbled and owners struggled for
orders, an official survey showed.  O/R 
    At least nine major sectors pared losses. Healthcare
 .GSPTTHC  and capped communications  .GSPTTTS  were the only
outliers, rising 1% and 0.3%, respectively, with Bausch Health
Companies'  BHC.TO  3% gain supporting healthcare stocks.
        On Wall Street, the main indexes fell more than 1% as
investors assessed factory activity data that edged up in August
from an eight-month low in July.  .N 
  
    Markets will be watching the Bank of Canada's policy meeting
on Wednesday, in which it is widely expected to lower its policy
rate by 25 basis points for the third time in a row.
 0#BOCWATCH 
    "Lending rates are still very high. So, to me, it's the
start of an interest rate decreasing cycle that will continue
going forward, until the Bank of Canada finds that neutral rate
whatever that may be," said Allan Small, senior investment
advisor at Allan Small Financial Group with iA Private Wealth.
    Canadian manufacturing activity rose to a five-month high to
49.5 in August as production and new orders fell at slower
rates.

 (Reporting by Nikhil Sharma in Bengaluru, Divya Rajagopal in
Toronto; Editing by Shreya Biswas, Janane Venkatraman and
Richard Chang)
 ((Nikhil.Sharma@thomsonreuters.com))