“Canada’s main stock index fell amid losses in real estate and telecommunications stocks, while key domestic data failed to allay investors’ fears of a weakening economy.”, — write: epravda.com.ua
Canada’s main stock index fell amid losses in real estate and telecom stocks, while key domestic data failed to allay investors’ fears of a weakening economy. This is reported by Reuters. Canada’s economy beat market expectations by showing growth of 0.3% in October, but gross domestic product likely shrank in November, Statistics Canada said. The S&P/TSX composite index on the Toronto Stock Exchange was down 62.79 points, or 0.26%, at 24,536.69. “It seems that at this point, especially from the Canadian side, the expectation or the view is that the economy is rather weakening,” said Verecan Capital Management portfolio manager Josh Shelyuk. If November’s contraction is confirmed and GDP remains flat in December, the economy may fall short of the Bank of Canada’s forecast of 2% growth in the fourth quarter. Earlier in December, the Bank of Canada cut interest rates by 50 basis points for the second time in a row to ease concerns about slowing growth, while pointing to a slower pace of rate cuts in 2025. Separately, producer prices in Canada rose 0.6% in November compared to October, driven by higher prices for lumber and other wood products, as well as oil and energy. Among the sectors, the real estate sector and the cable sector suffered the biggest losses. Each of which decreased by 1.1%. Conversely, the health care sector rose 2.3%, led by Tilray Brands, which rose 10.1% as the cannabis company increased its earnings from the previous session.