Connect with us

Popular World News

Toronto market posts weekly decline as Fed spooks investors By Reuters

Bank of Japan policymakers saw prospects of quicker recovery in April By Reuters


Toronto market posts weekly decline as Fed spooks investors By Reuters

© Reuters. FILE PHOTO: A Bay Street sign, the main street in the financial district is seen in Toronto, January 28, 2013. REUTERS/Mark Blinch/File Photo

By Fergal Smith TORONTO (Reuters) – Canada’s main 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 weighed on investor sentiment. The Toronto Stock Exchange’s S&P/TSX composite index 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 on Wednesday struck a hawkish note in minutes from its latest meeting. “The story is still tied to the Fed and rising interest rates coming sooner than expected,” said Sadiq Adatia, chief investment officer at BMO Asset Management. Wall Street extended its weekly decline as investors remained worried about the U.S. interest rate outlook even after a weaker-than-expected December payrolls report. Domestic data showed the Canadian economy adding twice as many jobs as expected in December, supporting expectations for the Bank of Canada to begin hiking rates in the coming months. “What you have been seeing is a bit of rotation going on … the high-flying tech names have been selling off,” Adatia said. Higher interest rates reduce the value to investors of the future cash flows that technology and other high growth sectors are expected to produce. The Toronto market’s technology group fell for a fifth straight session, down 1.4%, but that was offset by gains for the heavily weighted financials group and energy stocks. Financials ended 0.4% higher, while energy climbed 0.9% as oil held on to much of this week’s rally.
prices settled 0.7% lower at $78.90 a barrel on Friday but were up nearly 5% for the week as the market weighed unrest in Kazakhstan and outages in Libya. Apparel manufacturer Canada Goose Holdings (NYSE:) Inc was among the biggest decliners, falling 6.3% after UBS slashed its target price on the stock.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


To Top
error: Content is protected !!