Canada’s TSX Composite Index opened Wednesday with significant losses, marking its lowest point in nearly a week. The index dropped 562.66 points, or 1.6%, to settle at 35,086.85. Miners and financials were the hardest hit, reflecting broader inflationary concerns fueled by rising oil prices and bond yields. The Canadian dollar also weakened slightly, closing at 70.22 cents U.S.
Financial stocks led the decline, with Royal Bank of Canada falling $4.23 (2.2%) to $192.12 and Toronto-Dominion Bank shedding $3.55 (3%) to $114.66. Investors are anticipating at least one 25-basis-point interest rate hike by the Bank of Canada before year-end, adding to market uncertainty.
The TSX Venture Exchange also saw a sharp drop, losing 16.7 points (1.9%) to close at 873.42. Most sectors declined, with gold, materials, and financials among the worst performers. Only health-care, consumer staples, and telecoms managed gains, rising 1.1% and 0.7%, respectively.
Meanwhile, U.S. markets also suffered losses as bond market pressures pushed Treasury yields to their highest levels in over two decades. The Dow Jones Industrials fell 539.23 points (1.1%) to 50,982.06, while the S&P 500 and NASDAQ Composite lost 50.17 points and 219.7 points, respectively. Bank stocks and technology shares were particularly hard hit, with fears of higher interest rates dampening investor sentiment.
Gold prices dropped $54.80 to $4,132.30 an ounce, while oil prices edged up 14 cents to $89.58 a barrel. The 10-year Treasury yield rose to 5.31%, up from 5.28% the previous day.