TSX slips 3% as recession fear grips the world

Image Source: © Pookpiik | Megapixl.com

The Canadian stock market slipped significantly on Thursday, a day after the Federal Reserve in the United States hiked interest rates to curb inflation.

Canada's main equity index tumbled by 607.5 points or three per cent and closed at 19,004.06 points. The energy sector declined the most by 5.3 per cent, followed by base metals (5%) and the healthcare sector (4%). 

One-year price chart of TSX Composite Index along with SMA 20-day, SMA 30-day, SMA-50-day (June 16). Analysis by © 2022 Kalkine Media®

Volume Active

Athabasca Oil Corporation (TSX:ATH) recorded the highest trading activity as its 11.46 million shares traded hands on the Toronto Stock Exchange on June 16. As the price of the ATH stock declined by 2.3 per cent, a high volume of ATH stock suggests it was in the selling zone.

Meanwhile, Crescent Point Energy Corp. (TSX:CPG) was the second-most volume active stock as 10.9 million CPG shares exchanged hands on Thursday.

Wall Street Update

After a Wednesday rally, the US equities markets declined on June 16 as recession fears resurfaced worldwide as Federal Reserve struggles to control inflation.

The S&P 500 dipped to its lowest since December 2020, declining 3.2 per cent. Meanwhile, the NASDAQ Composite ended the trading session after falling 4.08 per cent.

Also, the Dow Jones Industrial Average tumbled by 2.4 per cent.

Commodity Updates

Gold Futures for August delivery rose 2.07 per cent to US$ 1,857.35 per troy ounce. Whereas July crude oil increased 1.49 per cent to US$ 117.03 per barrel, August Brent oil rose 0.62 per cent to US$ 119.25 per barrel.

Currency News

The CAD/USD exchange rate remained constant at 0.77, while the CAD/EUR exchange rate declined 1.37 per cent to 0.73.

Futures for the US Dollar Index fell 1.25 per cent to 103.62.



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