CANADA STOCKS-TSX pulls back from record high as economic uncertainty weighs

  • 9/7/2021
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(Adds investor quotes and details throughout, updates prices) * TSX ends down 0.1% * Index touches a record intraday high of 20,897.57 * Energy sector declines 0.7%; materials down 0.6% * Shares of uranium producers jump TORONTO, Sept 7 (Reuters) - Canada’s main stock index edged lower on Tuesday as worries about the global economic outlook weighed on resource shares, with the market pulling back from a record high. The Toronto Stock Exchange’s S&P/TSX composite index ended down 14.80 points, or 0.1%, at 20,806.63, after touching a record intraday high of 20,897.57. Investors have come back from “the dog days of summer” with a more cautious attitude toward stocks, said Macan Nia, senior investment strategist at Manulife Investment Management. The concern is that there has not been a pullback in the market but also that the global spread of the Delta variant of the coronavirus could slow economic recovery. U.S. crude oil futures settled 1.4% lower at $67.35 a barrel, pressured by concerns about weak demand in the United States and Asia as well as a stronger U.S. dollar, and copper futures were down 1.2%. The energy group on the TSX retreated 0.7%, while the materials group, which includes precious and base metals miners and fertilizer companies, lost 0.6%. Still, loose monetary policy and earnings growth remain supportive of stocks, said Nia, adding “just because we’ve had the strong returns it doesn’t mean the market can’t drive higher.” The TSX has advanced about 19% since the start of the year. The financials sector, which accounts for about 30% of the Toronto market’s value, gained 0.3%, while information technology was up 0.4%. Uranium producers Denison Mines Corp and Cameco Corp were the biggest gainers. Both ended more than 7% higher. Investors await a Bank of Canada interest rate decision on Wednesday. The central bank is expected to keep interest rates on hold at a record low of 0.25% and to wait until October before cutting its bond purchases further, a Reuters poll of economists showed. (Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Dan Grebler) Our Standards: The Thomson Reuters Trust Principles.

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