Canada Stocks: TSX pulls back from 2-month high as energy, financials fall

Capital Power

21/11/2023 21:14

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      TSX ends down 0.7%, at 20,109.97
    

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      Inflation slows to 3.1% in October
    

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      Energy stocks fall nearly 1%
    

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      Capital Power sinks on asset acquisition
    

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      Materials group adds 0.7% as gold rallies
    

  
 (Updates at market close)
    By Fergal Smith
       Nov 21 (Reuters) - Canada's main stock index
consolidated some recent gains on Tuesday as financial and
energy shares lost ground, while investors weighed domestic
inflation data that could support a shift to interest rate cuts
over the coming months.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended down 136.50 points, or 0.7%, at 20,109.97, after
posting on Monday its highest closing level since Sept. 18.
    "I think the  market is taking a bit of a breather. It is
working off some overbought levels," said Brandon Michael,
senior investment analyst at ABC Funds.
    "There was a slowdown in Canadian inflation and investors
are now leaning towards (rate) cuts. It's not a matter of if
central banks are going to cut but its when and its how much.
And that's going to be a tailwind for stocks in the future."
    Canada's annual inflation rate eased more than expected to
3.1% in October and core inflation measures edged down to their
lowest levels in about two years.
    Money markets are betting that the Bank of Canada's
tightening campaign is at an end and the central bank will shift
to rate cuts as soon as April.  0#BOCWATCH     
    Canada's main stock index is set to rise less than
previously thought over the coming year as a slowdown in the
global economy weighs on the outlook for corporate earnings, a
Reuters poll found.
    The energy sector fell nearly 1% as oil settled 0.1% lower
at $77.77 a barrel. Heavily-weighed financials also ended lower,
losing 0.9%, and consumer staples was down 1.7%.
    Capital Power Corp  CPX.TO  shares were among the biggest
decliners. They sank 6.3% after the company said it was
acquiring two U.S.-based natural gas-fired generation facilities
for $1.1 billion.
    The only major sector not to lose ground was materials. It
added 0.7% as gold climbed 1.1%, approaching $2,000 per ounce.

 (Reporting by Fergal Smith in Toronto and Siddarth S in
Bengaluru; Editing by Tasim Zahid and Grant McCool)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))