Canada Stocks: Toronto index reverses gains to close lower as markets parse Fed statement

Docebo

16/12/2021 21:22

* TSX closes down 29.38 points, or 0.14%, at 20,739.78
    * Tech stocks lead declines on Fed inflation comments
Wednesday
    * Mining stocks rise 1.9%, following gold, silver prices
higher

 (Updates to close)
    By Nichola Saminather
    Dec 16 (Reuters) - Canada's main stock index reversed
earlier gains to close lower on Thursday, as markets further
parsed the implications of the U.S. Federal Reserve's plans to
speed up the taper of its bond-buying program and its inflation
expectations.  
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  closed down 29.38 points, or 0.14%, at 20,739.78.
    Technology stocks led declines, losing 2.2%, with Lightspeed
Commerce  LSPD.TO , Docebo  DCBO.TO  and Converge Technology
Solutions  CTS.TO  among the 10 biggest losers on the benchmark,
tracking the tech-heavy Nasdaq's  .IXIC  2.5% decline in the
U.S.
    On Wednesday, the Fed said it would accelerate the pace of
its tapering and laid out a scenario in which the pandemic,
despite the Omicron surge, gives way to a benign set of economic
conditions, but it dropped references to inflation as
"transitory."  urn:newsml:reuters.com:*:nL1N2SZ1G5
    The Fed's policy statement lifted the TSX on Wednesday to
its first positive close since Dec. 7.  urn:newsml:reuters.com:*:nL1N2T03G4.
    "What's happening today is the sobering effect of what (Fed
Chairman Jerome) Powell said yesterday," said Philip Petursson,
chief investment strategist at IG Wealth Management. 
    This is causing "a real barbell effect," he added.
"Inflation helps gold, commodities, financials ... technology is
bearing the brunt." 
    Materials were the biggest gainers, climbing 2.15%, with
mining companies MAG Silver  MAG.TO , Pan American Silver
 PAAS.TO  and Silvercorp Metals  SVM.TO  rising the most, as
spot silver  XAG=  added 1.7% to $22.44 an ounce and spot gold
 XAU=  increased 1.2% to $1,797.95. 
    Energy shares were flat, despite a rise in the crude oil
price  CLc1  of 1.6%, to $72.03 a barrel. 

 (Reporting by Nichola Saminather in Toronto; Additional
reporting by Amal S in Bengaluru;
Editing by Vinay Dwivedi and Leslie Adler)
 ((Nichola.Saminather@thomsonreuters.com; +1 647 480 7519;))