Canada’s main stock index fell on Thursday, snapping a three-day winning streak, as bond yields climbed after hotter-than-expected U.S. inflation data led to receding hopes of a rate cut in the coming months by the U.S. Federal Reserve.
The TSX Composite struggled in the red 164.82 points to reach noon EDT Thursday at 21,805.29.
The Canadian dollar folded 0.34 cents at 73.92 cents U.S.
Canada stocks have risen this year so far benefiting from higher commodity prices and the continued expectation that central banks will move this year to lower interest rates.
Shares of Lithium Americas jumped 94 cents, or 12.2%, to $8.64, after the U.S. Department of Energy granted the miner a conditional commitment loan of $2.26 billion to finance the construction of its Thacker Pass project in Nevada.
Restaurant Brands International was down $2.01, or 1.8%, to $109.49. Burger King parent named Sami Siddiqui as its chief financial officer and made a slew of other leadership changes, as the company pushes ahead with its long-term goals and navigates weakness in some international markets.
On matters economic, January manufacturing sales rose 0.2% mainly on higher sales of motor vehicles and chemical products. Meanwhile, production of aerospace products and parts posted the largest decline.
ON BAYSTREET
The TSX Venture Exchange lost 3.06 points to 552.02.
All but one of the 12 subgroups had fallen by midday Thursday, led by communications and consumer discretionary stocks, each down 1.5%, while consumer staples tumbled 1.4%.
Only energy held out against the negative tide, picking up 0.4%.
ON WALLSTREET
The S&P 500 slipped Thursday after the release of hotter-than-expected U.S. inflation data that sent Treasury yields higher, while Nvidia shares were under pressure.
The Dow Jones Industrials lost 91.41 points to pause for lunch Thursday at 38,951.91.
The much-broader index slid 14.08 points to 5,151.23.
The NASDAQ deducted 31.08 points to 16,146.68.
Investors were buying major technology shares like Apple and Microsoft Thursday. Trading platform Robinhood popped 7% after the company reported a 16% increase in assets under custody in February from the prior month. Troubled electric vehicle startup Fisker tumbled 48% after The Wall Street Journal reported that the company has hired restructuring advisors to prepare for a potential bankruptcy filing.
February’s producer price index, a measure of wholesale inflation, advanced 0.6% last month. Excluding food and energy prices, core PPI climbed 0.3% in February, compared to an estimate from economists polled by Dow Jones that forecast headline PPI increased by 0.3% in February, or 0.2% for the core reading.
The PPI report is the last major piece of economic data to be released prior to the Federal Reserve’s upcoming policy meeting, set for March 19-20.
Prices for the 10-year Treasury lost ground, boosting yields to 4.29% from Wednesday’s 4.19%. Treasury prices and yields move in opposite directions.
Oil prices jumped $1.05 to $80.97 U.S. a barrel.
Gold prices sagged $22.40 to $2,158.20.
