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Tech and healthcare stocks pull TSX lower as rate concerns linger – MarketsOUS News

Canada’s main stock index hit a new two-week low on Thursday, weighed down by tech and healthcare stocks, as investors continued to worry about the pace of interest rate hikes by major banks power stations.

After opening with modest gains, the Toronto Stock Exchange’s S&P/TSX Composite Index fell 0.31% to 19,125.01, its lowest level since Sept. 7.

Rate-sensitive tech stocks fell 1.5%, while healthcare stocks fell 0.8%.

The benchmark TSX closed nearly 1% lower on Wednesday, reflecting weak sentiment on Wall Street, after the US Federal Reserve announced another oversized interest rate hike and vowed to ‘continue’ its battle to fight inflation.

All eyes are on the Bank of Canada’s policy decision next week, with traders predicting a 75% chance of a 50 basis point rate hike after data this week signaled easing inflationary pressures national.

“I think the Bank of Canada is going to recognize that the Canadian economy has lost jobs for three months,” said Angelo Kourkafas, investment strategist at Edward Jones Investments.

“We also saw the latest CPI release turn weaker than expected, so maybe at the margin they might look less hawkish than the Fed yesterday.”

Friday’s Canadian retail sales data could offer new clues about the health of the domestic economy and, in turn, fuel monetary policy expectations.

The country’s energy sector rebounded 0.7% from Wednesday’s declines, helped by an increase in oil prices on the prospect of higher Chinese demand and heightened geopolitical risks.

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