CANADA STOCKS-Toronto market falls as 'risk-on trade' loses some steam

  • 11/18/2021
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(Adds investor quotes and details throughout, updates prices) * TSX ends down 64.14 points, or 0.3 percent, at 21,653.02 * Energy sector falls 0.5% * Industrials end 0.91% lower ADVERTISEMENT * Materials add 0.83% as gold rises TORONTO, Nov 17 (Reuters) - Canada’s main stock index fell on Wednesday as risk appetite lost some positive momentum, with investors looking for the next catalyst that could help drive stocks to new highs. The Toronto Stock Exchange’s S&P/TSX composite index ended down 64.14 points, or 0.3 percent, at 21,653.02, extending its pullback from a record intraday high on Tuesday at 21,796.16. “We are seeing the risk-on trade lose a bit of steam here,” said Elvis Picardo, portfolio manager at Luft Financial, iA Private Wealth. “You can see that in the decline in the Canadian dollar as well, which is a very good proxy for risk appetite.” ADVERTISEMENT The Canadian dollar weakened to its lowest level in nearly six weeks against the greenback as oil prices fell and domestic data showed inflation rising in line with expectations. Third-quarter “earnings have been quite solid across the board. Investors are wondering what’s next,” Picardo said. The energy sector fell 0.5% as rising COVID-19 cases in Europe weighed on oil prices. [ Industrials were down 0.91%, while the heavily weighted financial services sector declined 0.17%. Gold prices gained as inflation worries boosted demand for the safe-haven metal. That helped the materials sector, which includes precious and base metals miners and fertilizer companies, post gains of 0.83%. (Reporting by Fergal Smith; Additional reporting by Shashank Nayar in Bengaluru and Maiya Keidan in Toronto; Editing by Peter Cooney)

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