Canada Stocks: TSX down as energy stocks slide; inflation data boosts rate cut bets

Bausch Health Companies

15/10/2024 15:45

(Updated at 10:10 a.m. ET/ 1410 GMT)
    By Nikhil Sharma
       Oct 15 (Reuters) - Canada's main stock index fell on
Tuesday due to energy stocks tracking a decline in oil prices,
while investors assessed domestic inflation data that raised
expectations for an outsized interest rate cut next week.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  was down 38.53 points, or 0.16%, at 24,432.
    The heavyweight energy sector  .SPTTEN  dropped 4.5% as oil
prices fell over 4% due to a weaker demand outlook and easing
supply disruption fears after a report said Israel would not
strike Iranian oil targets.  O/R 
    "Canada remains vulnerable to selling pressure related to
the selloff in the price of oil," said Colin Cieszynski, chief
market strategist at SIA Wealth Management. 
    "The inflation number kind of helps, but Canadian markets
don't always trade-off of Canadian economic data," Cieszynski
added.
    Canada's annual inflation rate slowed more than expected to
1.6% in September, from 2.0% in August, pushing traders to raise
their bets for a larger rate cut by the Bank of Canada at its
policy meeting on Oct. 23.
    The bank has cut its policy rates three times this year, and
markets see a 69% chance for a hefty 50-basis-point cut, up from
47.2% earlier in the day.  0#BOCWATCH 
    Canadian 10-year benchmark yield  CA10YT=RR , which has an
inverse relationship with interest rates, fell as much as eight
basis points after the report.
    At least eight sectors nursed gains that helped limit
overall index losses, with rate-sensitive utilities  .GSPTTUT 
sector up 0.9% and healthcare  .GSPTTHC  rising 1.4%, driven by
a 6.9% jump in drugmaker Bausch Health Companies  BHC.TO .
    The TSX is up 16.4% for the year.
    Among other stocks, shares of VerticalScope Holdings
 FORA.TO  fell 4.1% after brokerage CIBC downgraded the Canadian
technology firm to neutral from outperformer.

 (Reporting by Nikhil Sharma in Bengaluru; Editing by Vijay
Kishore)
 ((Nikhil.Sharma@thomsonreuters.com;))