Canada Stocks: Toronto stocks fall as mining, energy weigh; closes higher for the week

Sandstorm Gold

08/11/2024 21:20

(Updates to close)
    By Nikhil Sharma and Nivedita Balu
       Nov 8 (Reuters) - Canada's main stock index slipped on
Friday, weighed down by mining and energy shares, as markets
trimmed bets for a 50-basis-point interest rate cut by the Bank
of Canada next month after domestic jobs data.    
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  was down 86.53 points, or 0.35%, at 24,759.40. The
pullback came as the index closed higher for the week after two
straight weeks of declines, broadly benefiting from Donald
Trump's reelection in the United States and his proposals for
tax cuts and looser regulations on corporations.
    However, his planned 10% tariff on all imports could have
serious implications for Canada, the world's No. 4 crude oil
producer. 
    Canada's materials sector  .GSPTTMT  fell 1.9% as gold
prices logged their steepest weekly decline in over five months,
pressured by a stronger dollar and uncertainty about Trump's
victory's impact on the U.S. rate cut trajectory  GOL/  
    Lower copper prices also weighed on the sector as China's
latest fiscal stimulus disappointed investors.  MET/L 
    Among top losers were Sandstorm Gold  SSL.TO , Ivanhoe Mines
 IVN.TO  and First Quantum Minerals  FM.TO  that fell between 7%
and 9%. 
    The energy sector  .SPTTEN  fell 1.1%, tracking oil prices
as concerns eased over Hurricane Rafael's impact on the U.S.
Gulf's oil and gas infrastructure.  O/R 
    Canada added lower-than-expected 14,500 jobs in October,
while wages of permanent employees rose. The unemployment rate
stayed unchanged from September but hovered around a 34-month
high of 6.5%.
    Traders see a 60% chance of a 50-bps cut at the Bank of
Canada's December policy meeting, slightly below the 64%
likelihood seen before the data.  0#BOCWATCH 
    BoC's peer, the U.S. Federal Reserve, cut rates by 25 basis
points on Thursday.
    "Potentially, the Fed is going to have a slower and
shallower rate cutting path relative to the Bank of Canada and
other central banks that will apply some upward pressure on the
dollar and therefore weigh on some of these commodity prices,"
Angelo Kourkafas, senior investment strategist at Edward Jones
said. 
    The biggest gainer on the index, Mattr  MATR.TO , jumped 16%
after the material technology company agreed to buy power cable
producer AmerCable from France-based Nexans  NEXS.PA  for
$280 million.

 (Reporting by Nikhil Sharma in Bengaluru and Nivedita Balu in
Toronto; Editing by Vijay Kishore and Alistair Bell)
 ((Nikhil.Sharma@thomsonreuters.com;))