First Majestic, Kinross Hammered
Stocks in Canada’s largest centre felt around for the bruises all day Wednesday, weighed down by resource and real-estate interests.
The TSX Composite was in the dumps 253.07 points, or 1.2%, at 20,675.02.
The Canadian dollar shed 0.12 cents to 74.01 cents U.S.
Among real-estate stocks that were wounded, H&R Real Estate REIT units lost 37 cents, or 3.7%, to $9.75, while Canadian Apartment REIT sank $1.74, or 3.6%, to $46.91.
Materials also got stung, with First Majestic Silver dropping 46 cents, or 6.7%, to $6.36. while First Quantum Minerals moved backward 92 cents, or 6.9%, to $12.65.
In gold stocks, Kinross Gold dipped 20 cents, or 3.4%, to $7.35, while New Gold lost a dime, or 5.4%, to $1.74.
On the economic slate, Statistics Canada reported Canadian investors purchased $12.5 billion of foreign securities in November, after divesting $8.2 billion in October. At the same time, foreign investors acquired $11.4 billion of Canadian securities, following three consecutive months of divestment totaling $39.7 billion.
The agency also said its Industrial Product Price Index fell 1.5% month over month in December and was 2.7% lower than December 2022, while its Raw Materials Price Index declined 4.9% on a monthly basis in December 2023 and fell 7.9% year over year.
ON BAYSTREET
The TSX Venture Exchange let go of 4.26 points, to close Wednesday at 553.98
All 12 subgroups remained in the red all day, weighed most by real-estate, weakening 2.5%. materials, off 2.4%, and gold, sinking 2.3%.
ON WALLSTREET
Stocks fell Wednesday as Treasury yields tracked higher following the release of stronger-than-expected U.S. economic data.
The Dow Jones Industrials bowed 94.45 points at 37,266.67. This marked the third straight day of losses for the 30-stock index
The S&P 500 index sank 26.77 points to 4,739.21.
The NASDAQ dumped 88.72 points to 14,855.62.
Charles Schwab shed 1.3% after reporting mixed quarterly results. Walgreens and Caterpillar both lost 4% and more, leading the Dow’s losses. Meanwhile, Boeing advanced 1.3%, making it one of the biggest gainers in the Dow after weeks of heavy losses.
Retail sales data for December came in stronger-than-expected, indicating a resilient consumer and putting aggressive rate cuts from the Federal Reserve into doubt. Retail sales were up 0.6% from November, and gained 0.4% month-over-month excluding autos. Economists polled by Dow Jones had estimated a 0.4% month-to-month increase in retail sales and 0.2% ex-autos.
So far, traders are pricing in a roughly 60% chance that the Federal Reserve begins cutting rates in March as hopes mount for a pivot.
Prices for the 10-year Treasury slipped, raising yields to 4.10% from Tuesday’s 4.07%. Treasury prices and yields move in opposite directions.
Oil prices changed directions and gained 40 cents to $72.80 U.S. a barrel.
Gold prices dipped $21.40 to $2,008.80.