TSX sinks, loonie dips as Bank of Canada leaves interest rate unchanged

Canada's main stock sank on Wednesday, September 8, amid concerns after the Bank of Canada hinted at “risks” and left interest rates undisturbed at 0.25 per cent.

The S&P/TSX composite index traded in red for the second consecutive day and dipped by 64.84 points or 0.31% to 20,741.79.

The negative close was mainly triggered by the weakness in the energy, base metals, information technology and healthcare sectors. However, the losses were largely offset by strength in the utilities, industrials and telecom stocks.

1-Year Price Chart (as on September 08, 2021). Analysis by Kalkine Group

 

Active Volume

BCE Inc., Bombardier Inc. and Suncor Energy Inc. were among the most active stocks on the TSX on Wednesday from the volume standpoint.

Movers and Laggards

Wall Street Update

Following a mixed performance in the previous session, the US main averages all closed the day in negative territory on Wednesday. Wall Street's weakness reflected fears about the delta variant's fast spread, which may stifle the global economic recovery.

The Dow Jones Industrial Average fell 68.93 points or 0.2% to 35,031.07, the S&P 500 fell 5.96 points or 0.1% to 4,514.07 and the Nasdaq fell 87.69 points or 0.6% to 15,286.64.

 

Commodity Update

Gold again traded lower at US$ 1,793.50/oz, down 0.28%.

Brent oil rallied to US$ 72.60/bbl, up 1.27%, while Crude oil traded at US$ 69.30/bbl, up by 1.39%.

Currency News

The Canadian Dollar slid against the US Dollar for the third-straight session on Wednesday, while USD/CAD closed at 1.2689, up 0.33%.

The US Dollar continued to gain momentum for the second trading session against the basket of major currencies on Wednesday and closed at 92.71, up 0.21%.

Money Market

The US 10-year bond yield has remained volatile in the recent past. It lost 2.96% on Wednesday and ended at 1.336.

The Canada 10-year bond yield fell 1.87% and closed in red at 1.209.

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