TSX slips with financials, miners; Shaw shines

Marco Green
June 14, 2017

Canada's main stock index ended lower on Monday, weighed down by losses from heavyweight banking stocks after two days of strong gains, and as the country's technology sector tracked the larger US tech group down.

The financials group slipped 0.2 per cent, with Royal Bank of Canada down 0.4 per cent to C$93.89 and Canadian Imperial Bank of Commerce off 0.6 per cent at C$106.16.

The materials group, which includes precious and base metals miners and fertilizer companies, fell 0.8 percent.

Shaw was the most influential gainer on the index, up 2.5 percent to C$29.26 after the news.

Bank of Canada Deputy Governor Carolyn Wilkins says interest rate cuts instituted in 2015 have largely done their job as the Canadian economy gathers momentum.

The Federal Reserve is expected on Wednesday to raise interest rates for the third time since December, while comments by a senior Bank of Canada official raised the prospect that the central bank could hike rates sooner than investors had anticipated.

Energy stocks ended 0.4 per cent higher overall, with Encana Corp up 2.1 per cent at C$12.84. Apple also contributed gains to the 30-stock index.

The S&P 500 technology sector rose 0.9 per cent, recovering from its biggest two-day decline in almost a year that also weighed on the broader market.

The Dow Jones Industrial Average rose 92.8 points, or 0.44 per cent, to 21,328.47, the S&P 500 gained 10.96 points, or 0.45 per cent, to 2,440.35 and the Nasdaq Composite added 44.90 points, or 0.73 per cent, to 6,220.37.

In economic news, the National Federation of Independent Business' small business optimism index came in unchanged at 104.5 for May.

Meanwhile, U.S. producer prices remained unchanged last month as energy costs recorded their biggest decline in more than a year, suggesting inflation pressures were easing after rising at the start of the year. Market expectations for a June rate hike were 99.6%. Treasury prices and yields move in opposite directions.

Potash Corporation of Saskatchewan Inc dropped 1.7 percent to C$22.51, while gold was little changed at $1,265.20 an ounce ahead of the Fed meeting this week.

Other reports by Click Lancashire

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