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TSX ends down 0.8% at 25,839.17
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10-year yield rises to near four-month high
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Real estate falls 2.1%, tech ends 2.3% lower
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Canada Goose jumps 19.1% on quarterly sales
(Updates at market close)
By Fergal Smith
May 21 (Reuters) - Canada's main stock index pulled back
from a record high on Wednesday as long-term borrowing costs
climbed and investors took stock of recent gains for the market.
The Toronto Stock Exchange's S&P/TSX composite index
ended down 214.46 points, or 0.8%, at 25,839.17, after
posting a record closing high on Tuesday.
The decline ended a 10-day winning streak for the market,
the longest such run since October 2021.
"Yields have popped up, which has caused some concern for
investors and I think also just a pause based on the recent
strength in the market," said Stan Wong, a portfolio manager at
Scotia Wealth Management.
The Canadian 10-year yield rose 8.4 basis points to 3.382%,
its highest level since January 16, as investors reduced bets on
Bank of Canada interest rate cuts after domestic data on Tuesday
showed underlying inflation heating up in April.
U.S. Treasury yields also climbed as investors monitored the
progress of a tax bill in the U.S. Congress that could swell the
government's debt load.
The interest-rate sensitive real estate sector fell 2.1% and
technology ended down 2.3%. Higher bond yields reduce the value
to investors of the long-term cash flows that high-growth tech
stocks are expected to produce.
Heavily weighted financials lost 1% ahead of the start on
Thursday of earnings season for Canada's big banks. The lenders
are bracing for trade uncertainty and are expected to have
shored up loan loss reserves in the second quarter.
The materials group, which includes metal mining shares, was
the only one of 10 major sectors to end higher, adding 1.3%.
"Gold prices are near record highs and that's brought a lot
of momentum to the sector," Wong said.
Shares of Canada Goose Holdings Inc ( GOOS ) jumped 19.1%
after the luxury retailer reported stronger-than-expected
quarterly sales.