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CANADA STOCKS-TSX pulls back from record high on rate cut uncertainty
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CANADA STOCKS-TSX pulls back from record high on rate cut uncertainty
Apr 2, 2024 1:58 PM

*

TSX ends down 0.5% at 22,075.10

*

Communication, real estate stocks decline

*

Energy rises 1.2%; oil settles 1.7% higher

*

Metal miners gain as gold posts new record high

(Updates at market close)

By Purvi Agarwal and Fergal Smith

April 2 (Reuters) - Canada's main stock index ended

lower on Tuesday, giving back some recent gains, as increased

uncertainty around the timing of expected Federal Reserve

interest rate cuts weighed on the communication services and

real estate sectors.

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

ended down 110.15 points, or 0.5%, at 22,075.10,

pulling back from a record closing high on Monday.

"This modest weakness is really driven by concerns that the

economic strength in the U.S. and higher oil prices in the last

couple of days could delay the Fed's rate cuts", said Angelo

Kourkafas, senior investment strategist at Edward Jones

Investments.

Canada's 10-year bond yield touched its highest

level since mid-February at 3.678%.

High-dividend paying sectors such as communication services

and real estate could particularly benefit from lower borrowing

costs. Communication services fell 2.1% and real estate was down

1.3%.

Industrials and heavily-weighed financials were also a drag,

with both sectors losing 1%. Helping to offset those declines

were gains for resource shares.

The energy sector added 1.2% as oil settled 1.7%

higher at $85.15 a barrel. The move in oil came as supplies face

fresh threats from Ukrainian attacks on Russian energy

facilities.

The materials sector, which includes metal miners and

fertilizer companies, added 0.6% as copper prices rose

and gold climbed to a fresh record high.

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