TSX dips significantly amid rate hike fears, loonie falls

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The S&P/TSX Composite Index slipped by 299.05 points or 1.48 per cent to close at 19,873.29 on Friday, August 26. The market weakness came as the US Federal Reserve Chair, Jerome H. Powell, indicated that the interest rates could rise further to stamp down inflation.

All the Canadian indices were in the red zone and the healthcare sector declined the most by 5.05 per cent.

Sectors like the information technology (IT), base metals, and industrial slid by 4.39 per cent, 1.78 per cent and 1.62 per cent, respectively.

One-year price chart of TSX Composite Index along with SMA 20-day, SMA 30-day, SMA-50-day (August 26). Analysis by © 2022 Kalkine Media®).

Volume Active

Barrick Gold (TSX: ABX) topped the volume active list with a trading volume of 12.04 million on Friday, August 26. Suncor Energy (TSX: SU) was the second in the volume actives with 10 million SU shares switching hands, followed by Manulife Financial (TSX: MFC), which had a trading volume of 9.28 million MFC shares.

Wall Street update

The Wall Street markets were also in the red territory. The NASDAQ Composite Index lost 497.55 points or 3.93 per cent reaching 12,141.71 at the end of the Friday session. The NYSE Composite Index also dropped 417.03 points, or 2.67 per cent, to close at 15,178.21. Meanwhile, the Dow Industrials index fell by 1008.38 points or 3.03 per cent, while the S&P 500 decreased by 141.46 points or 3.37 per cent.

Commodities

Gold prices declined by 1.22 per cent to US$ 1,749.8 per troy ounce at market close on August 26. The Brent Oil Futures for November 2022 stood at US$ 99.01 per barrel, up by 0.56 per cent. Whereas the Crude WTI Futures for October 22 rose to US$ 93.06 a barrel, up by 0.58 per cent.

Currency news

Now coming to foreign exchange rates, the CAD/USD slid by 0.87 per cent to 0.76, and the CAD/EUR fell by 0.76 per cent to 0.76. Meanwhile, the US Dollar Index Futures for September 2022 jumped by 0.29 per cent to close at 108.75.

Bond Market

Canada’s 10-Year Bond Yield was up by 0.1 per cent and reached 3.01, while the United States 10-Year Bond Yield edged lower by 0.06 per cent to 3.03.


 


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