Canada Stocks: TSX pulls back from 3-week high on Fed jitters

iA

05/01/2023 21:22

(Adds details throughout, updates prices to close)

        * 
      TSX ends down 81.99 points, or 0.4%, at 19,506.84
    

        * 
      Technology falls 1.8%
    

        * 
      Industrials ends 1.3% lower
    

        * 
      Shares of Fortuna Silver Mines drop 10.4%
    

  
    By Fergal Smith
       TORONTO, Jan 5 (Reuters) - Canada's main stock index
fell on Thursday, pulling back from a three-week high the day
before, with the technology and industrial sectors leading
declines after U.S. data showed tight labor conditions in the
United States.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended down 81.99 points, or 0.4%, at 19,506.84, after
posting on Wednesday its highest closing level since Dec. 15.
    Wall Street's main indexes were also in the red as fresh
evidence of a tight labor market and hawkish comments from
Federal Reserve policymakers deepened fears of elevated interest
rates for longer than expected.
    "Once again, the Fed is doing what they can to keep markets
from moving higher and that is obviously spilling over into our
markets," said Allan Small, senior investment advisor of the
Allan Small Financial Group with iA Private Wealth.
    Higher interest rates are a particular headwind for
technology, reducing the value to investors of the future cash
flows that companies in that sector are expected to produce.
    Technology fell 1.8%, industrials lost 1.3% and
heavily-weighted financials ended 0.8% lower.
    Among the biggest decliners was precious metals miner
Fortuna Silver Mines Inc  FVI.TO . Its shares tumbled 10.4%
after its Mexican subsidiary received an official notice that
environmental clearances for its San Jose mine are being
reassessed.
    Energy was a bright spot, rallying 0.9%, as oil  CLc1 
clawed back some of this week's losses. 
 (Reporting by Fergal Smith; Additional reporting by Shristi
Achar A and Johann M Cherian in Bengaluru; Editing by David
Gregorio)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446;))