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TSX ends down 1.2% at 24,767.73

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Posts its lowest closing level in 2025

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Financials and real estate lose 1.8%

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Energy adds 1.1%; oil settles 3.6% higher

(Updates at market close)

By Fergal Smith

Jan 10 (Reuters) - Canada's main stock index posted its

biggest decline in over three weeks on Friday as rising

prospects that the Federal Reserve would pause its interest-rate

cutting cycle encouraged investors to take some profits after

strong gains for the market in 2024.

The Toronto Stock Exchange's S&P/TSX composite index

ended down 305.63 points, or 1.2%, at 24,767.73, its

lowest closing level since the start of the year and the biggest

decline since Dec. 18.

The index notched a gain of nearly 18% in 2024 but has

pulled back from a December peak.

"We would view this as counter-trend in nature rather than

an end of the bull market," said Joseph Abramson, co-chief

investment officer at Northland Wealth Management.

"As bond yields have been increasing, stocks have been

having a pullback. But very importantly, the rise in bond yields

is reflective of improving growth."

Stocks on Wall Street also sank as the yield on the U.S.

10-year note, a benchmark for borrowing costs

globally, touched its highest level since November 2023 at

4.790%.

U.S. job growth unexpectedly accelerated in December,

reinforcing expectations the Fed would keep interest rates

unchanged this month.

Canada's employment report was also stronger than expected,

with the economy adding 90,900 jobs in December. Still,

investors continued to lean toward further easing by the Bank of

Canada on Jan. 29.

Both the real estate sector and heavily weighted financials

tumbled 1.8% and technology was down 1.4%.

Energy was a bright spot, adding 1.1%, as the price of oil

settled 3.6% higher at $76.57 a barrel. The Biden

administration imposed fresh sanctions targeting Russian oil and

gas revenue.

Consumer discretionary was the only other sector to end

higher, as shares of Aritzia Inc ( ATZAF ) jumped 19.1% after the

clothing retailer beat estimates with its quarterly results.