Canadian Stock Market Plummets Amid Rising Inflation and Oil Prices
Canada's main stock index, the S&P/TSX Composite Index, opened sharply lower on Thursday, extending its losing streak to four straight sessions. The index fell 0.67% at the open, closing at 35,666.44 points.
The decline was largely attributed to the hotter-than-expected U.S. producer inflation data, which showed a 5.4% year-over-year increase in August, slightly above economists' expectations of 5.3%. This has intensified concerns about interest rates and the economic outlook.
Oil prices also contributed to the pressure, with Brent crude surging above $105 a barrel and U.S. West Texas Intermediate crude climbing above $100 for the first time since May. The energy sector's sensitivity to oil price movements is expected to provide some support to shares in this area.
The market will await Friday's U.S. consumer price report, which could further test inflation expectations ahead of the Federal Reserve's policy decision next week. U.S. stocks opened lower on Thursday, with the S&P 500 shedding 0.6%, the NASDAQ Composite slipping 1%, and the Dow Jones Industrial Average losing 0.5%.