Canada Stocks: Oil stocks drag TSX lower amid global slowdown worries

Brookfield Business Partners LP

12/10/2022 15:44

(Updates prices, details; adds comments)

        * 
      TSX extends losses for fifth day 
    

        * 
      Cameco slumps on billion-dollar merger
    

  
    By Johann M  Cherian and Shashwat Chauhan
       Oct 12 (Reuters) - Canada's main stock index extended
losses to a fifth straight session on Wednesday, dragged by
energy stocks, while U.S. inflation data fanned expectations of
aggressive rate hikes in the world's largest economy.
    By 10:07 a.m. ET (1407 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was 0.2% lower at 18,180.4,
after hitting its lowest since June. 
    The energy sector  .SPTTEN  dropped 1.4%, in tandem with oil
prices struck by a gloomy economic outlook and a strong dollar
that outweighed supply concerns stemming from last week's OPEC+
cut to its production target.  O/R 
    Wall Street also struggled after data showed U.S. producer
prices increased more than expected in September, suggesting
inflation could remain uncomfortably high for a while. The focus
is now on minutes from the September Federal Open Market
Committee meeting, which will be released later in the day.
 ECI  .N 
    "Investors are reacting to a stronger-than-expected U.S. PPI
report, which is seen as a forward-looking measure of
inflation," said Brandon Michael, senior analyst at ABC Funds in
Toronto.
    Canadian inflation data for September is due next week, with
investors pricing in a 97% probability of a 50 basis point rate
hike by the Bank of Canada when it meets on Oct. 26.  IRPR 
    "The Bank of Canada is going to follow the Federal Reserve.
It doesn't help that they have to act first, but investors are
expecting another super-sized rate hike," said Michael.
    Among the day's big movers, Cameco Corp  CCO.TO  slumped
14.5% after the company and Brookfield Renewable Partners said
they would acquire nuclear power plant equipment maker
Westinghouse Electric in a $7.9 billion deal including debt.
 L4N31C3MA 
($1= C$1.3)
 (Reporting by Johann M Cherian and Shashwat Chauhan in
Bengaluru; Editing by Devika Syamnath)
 ((johann.mcherian@thomsonreuters.com;))