Canada Stocks: TSX rebounds but on course for biggest weekly drop in a year

BlackBerry

20/12/2024 16:09

(Updates with market open)
    By Ragini Mathur
       Dec 20 (Reuters) - Canada's main stock index bounced
back on Friday, though it seemed headed for its biggest weekly
drop in more than a year, as investors fretted about the
direction of global interest rates in the coming year, a
possible U.S. government shutdown and slowing global economic
growth.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  rose 0.7% to 24595.68 points by 10:34 ET (1534 GMT),
up for the first time in seven sessions.
        Gold miners  .SPTTGD  and material shares  .GSPTTMT  led
a recovery in Canadian stocks at the end of a volatile week in
global markets.
  
        "Wednesday's Fed meeting certainly put some fear into
the markets that inflation is not tamed to the extent that we
would like to see and there is a threat of fewer interest rate
cuts going forward," said Michael Sprung, president at Sprung
Investment Management. 
  
        "There is a fair amount of uncertainty, not the least to
say that in Canada and now in Europe. The threat of tariffs is
shaking confidence in the economic outlook of those areas."
  
        The Fed on Wednesday 
    cut
     its policy rate by 25 basis points as expected but forecast
only two rate reductions in 2025, in a nod to the economy's
continued resilience and still-high inflation.
  
        Investors were also grappling with the possibility of a
partial U.S. government 
    shutdown
     and political uncertainty in Canada after Finance Minister
Chrystia Freeland stepped down earlier this week, citing
differences with Prime Minister Justin Trudeau on managing
finances.
  
        New Finance Minister Dominic LeBlanc 
    said
     the country's financial reserves are sufficient to support
businesses and individuals if the United States imposes a major
new tariff.
  
        Canada's retail sales in October were marginally lower
than expected as a jump in new car sales offset consumers'
reduced purchases at supermarkets, grocery stores and wine
shops, data 
    showed
    .
  
    Among single stocks, BlackBerry's  BB.TO  shares surged
16.8% after the security software firm beat quarterly revenue
estimates.

 (Reporting by Mathur in Bengaluru; Editing by Mohammed Safi
Shamsi)
 ((Ragini.mathur@thomsonreuters.com;))