Equities in Canada’s largest market took a sharply downward direction as the week, month and 2023’s final quarter got underway, as utilities and communications issues proved the hardest hit.
The TSX Composite tumbled 364.09, or 1.9%, to close Monday at 19,177.18.
The Canadian dollar skidded 0.51 cents at 73.16 cents U.S.
Utilities proved the biggest anchor on the index Monday, with Innergex slumping 77 cents, or 7.6%, to $9.40, while Brookfield Renewable units sank $1.62, or 5.5%, to $27.88.
In communications, Telus dropped 82 cents, or 3.7%, to $21.36, while BCE Inc. handed back $1.71, or 3.3%, to $50.14.
In materials, Hudbay Minerals retreated 51 cents, or 7.7%, to $6.10, while Endeavour Silver handed back 20 cents, or 6%, to $3.12.
Consumer staples shone out like a beacon, with Alimentation Couche-Tard gathering $1.29, or 1.9%, to $70.27, while North West Company picked up 44 cents, or 1.3%, to $34.64.
On the economic slate, the Markit Canada Manufacturing PMI fell further below the crucial 50.0 no-change mark in September to 47.5, from 48.0 in August. It was the fifth successive month that a deterioration in operating conditions has been registered, and the latest PMI number was the lowest since May 2020.
ON BAYSTREET
The TSX Venture Exchange dropped 13.43 points, or 2.4%, to 545.45.
All but one of the 12 TSX subgroups were lower, with utilities off 3.5%, communications backpedaling 3.1%, and materials off 2.9%
Only consumer staples held out against the negative tide, gaining 0.6%.
ON WALLSTREET
The Dow Jones Industrial Average was lower Monday even after U.S. legislators were able to come to a short-term agreement that staved off a government shutdown.
The blue-chip index remained 74.15 points in the red to 33,433.35.
The S&P 500 index found its way upward 0.34 points to 4,288.39.
The NASDAQ index gained 88.45 points to 13,307.77.
September marked the worst monthly performance of the year for the S&P 500 and NASDAQ The three major averages all finished the quarter in the red.
Discover was the S&P 500’s top gainer Monday, with shares up nearly 5%. Health-care company Viatris captured 1.9%, and DXC Technology rose 1.5%.
Technology, communications services and consumer discretionary were the only positive sectors in the broad market index. Communication services added 1.5%, while the tech sector traded 1.3% higher. Consumer discretionary gained 0.3%
The Senate passed a continuing resolution with just hours to spare before a midnight deadline Saturday, which was then signed by President Joe Biden into law. The bill keeps the government open through mid-November, an extended period that lawmakers can use to finalize funding legislation.
The initial reaction to the shutdown deal was positive with equity futures in the green for most of Sunday evening into Monday. But futures fell into the red before markets officially opened as investors turned their focus back to surging interest rates near 15-year highs.
Prices for the 10-year Treasury were woozy, raising yields to 4.69% from Friday’s 4.58%. Treasury prices and yields move in opposite directions.
Oil prices sank $1.99 to $88.80 U.S. a barrel.
Gold prices faded $20.60 to $1,845.50.