TSX edges lower as BoC hike interest rate, bond market continues rally

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TSX edges lower as BoC hike interest rate, bond market continues rally

 TSX edges lower as BoC hike interest rate, bond market continues rally
Image source: Copyright © 2021 Kalkine Media Pty Ltd.

The TSX Composite Index fell again Wednesday, June 1, after the Bank of Canada (BoC) raised interest rates by half a percentage point as expected.

Energy gained nearly two per cent and industrials almost one per cent, but all the other sectors saw losses. Healthcare fell 3.5 per cent and technology 2.1 per cent.

Base metals only lost 0.01 per cent, showing once again that tech tends to be negatively affected by interest rate hikes and that commodities may hedge against inflation.

In all, the benchmark index started June in red, although by a marginal 15.62 points, 0.08 per cent, to 20,713.72. Meanwhile, the Canada 10-year bond yield has risen 6.6 per cent in three days.

One-year price chart (June 1). Analysis by © 2022 Kalkine Media®

Volume actives

Suncor Energy Inc saw 26 million shares traded, making it the most active stock. It was followed by Manulife Financial Corporation that saw 12 million shares switch hands, and Enbridge Inc saw nearly 11 million shares traded.

Movers and laggards

Wall Street updates

On Wall Street, the losses were more pronounced. The Dow was down by 176.89 points, 0.54 per cent, to 32,813.23 points, while the S&P 500 gave away 30.92 points, 0.75 per cent, to 4,101.23 points. Nasdaq’s benchmark reduced 86.93 points, 0.72 per cent, to 11,994.46.

Commodities gain

Gold gained 0.02 per cent to US$ 1,848.70. The price of Brent oil fell 1.76 per cent and was at US$ 113.56/bbl and that of crude oil was up 0.51 per cent to US$ 115.26/bbl.

Currency news

The loonie lost 0.09 per cent compared to the US dollar while USD/CAD ended at 1.2656. The US Dollar Index was at 102.50 against the basket of major currencies, up 0.73 per cent.

Money market

The US 10-year bond yield was up 2.17 per cent to 2.911 and the Canada 10-year bond yield was up 3.01 per cent to 2.977.

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