Home Apparel market Toronto market posts weekly decline as Fed scares investors

Toronto market posts weekly decline as Fed scares investors

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  • The TSX ends up 12.25 points, or 0.06%, at 21,084.45
  • Shows a decrease of 0.65% for the week
  • Technology drops for 5th day in a row, down 1.4%
  • Energy climbs 0.9%

TORONTO, Jan. 7 (Reuters) – The main Canadian stock index closed slightly higher on Friday, but was still down for the first week of the year as the potential for faster-than-expected U.S. interest rate hikes worsened. weighed on investor morale.

The Toronto Stock Exchange’s S & P / TSX Composite Index (.GSPTSE) ended up 12.25 points, or 0.06%, at 21,084.45 on Friday. For the week, it was down 0.65% after the Federal Reserve issued a hawkish note on Wednesday just minutes from its last meeting.

“The story is always tied to the Fed and the hike in interest rates coming sooner than expected,” said Sadiq Adatia, chief investment officer at BMO Asset Management.

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Wall Street extended its weekly cut as investors remained concerned about the US interest rate outlook, even after a weaker than expected December wage report. Read more

National data showed that the Canadian economy created twice as many jobs as expected in December, supporting the Bank of Canada’s expectations to start raising rates in the coming months. Read more

“What you’ve seen is a little bit of rotation going on… the top tech names have sold out,” Adatia said.

Higher interest rates reduce the value to investors of future cash flows that technology and other high-growth sectors are expected to produce.

The Toronto-based market tech group fell for a fifth straight session, down 1.4%, but this was offset by gains for the heavily weighted financials and energy stocks group.

Financials ended up 0.4%, while energy climbed 0.9% as oil weathered much of this week’s rally.

U.S. crude prices fell 0.7% to $ 78.90 a barrel on Friday, but rose nearly 5% for the week as the market weighed on unrest in Kazakhstan and blackouts in Libya. Read more

Clothing maker Canada Goose Holdings Inc (GOOS.TO) was one of the biggest declines, falling 6.3% after UBS lowered its price target on the stock.

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Reporting by Fergal Smith; Additional reporting by Anisha Sircarl Editing by Cynthia Osterman

Our Standards: Thomson Reuters Trust Principles.