S&P/TSX composite closes decrease as mining sector weighs, U.S. stock markets blended

TORONTO — Canada’s main stock index closed decrease Thursday as mining and telecom stocks weighed, whereas U.S. stocks had been blended.

The S&P/TSX composite index closed down 22.07 aspects at 24,551.55 in a divergence from global markets, acknowledged Jules Boudreau, senior economist at Mackenzie Investments.

“The Canadian stock market, I might perhaps suppose, is underperforming its global traffic. And I think by methodology of if we’re having a sight at as of late, that can be a fabric legend.”

Boudreau acknowledged disappointing news from mining giant Newmont Corp. pushed down both the stock and the wider gold sector.

“Newmont, with out a doubt one of many finest gold producers, had its earnings the day earlier than as of late and they had been very harmful by methodology of profit steering.”

Miners hang considered beneficial properties because the gold mark has climbed severely in recent months, and it rose further Thursday, nonetheless the firm’s results repeat that does sooner or later translate into elevated earnings, he acknowledged.

“Investors are realizing that the elevated gold costs, the firms might perhaps perhaps need some misfortune harvesting that, consequently of it be tough for them to ramp up manufacturing whereas retaining costs decrease.”

Newmont itself closed down practically 15 per cent, whereas Barrick Gold Corp become down true over two per cent.

Teck Sources Ltd. also weighed on the mining sector as all of it another time diminished its copper manufacturing forecast, helping push its stock down 5.4 per cent on the day.

On the Telecoms aspect, Rogers Communications Inc. closed down practically three per cent after pronouncing earnings and a deal to sell off some of its infrastructure to pay down debt.

In Novel York, the Dow Jones industrial practical become down 140.59 aspects at 42,374.36. The S&P 500 index become up 12.44 aspects at 5,809.86, whereas the Nasdaq composite become up 138.83 aspects at 18,415.49.

Markets in the U.S. had been assuredly up as more finest news on the economic system came in, including jobless claims down and sure Buying Managers’ Index knowledge.

The sure economic news would in total lead to a sell-off in bonds, nonetheless that become tempered by elevated odds of Kamala Harris successful the presidential election, acknowledged Boudreau.

“In my look, and I think on the market might perhaps be look, a Trump election would suggest elevated passion charges, elevated bond yields all the scheme in which through the board. And so, the truth that per chance his odds went down a miniature of bit as of late methodology a miniature of little bit of a decrease passion price, despite the proven truth that the industrial knowledge might perhaps also quiet suppose elevated passion price.”

The Canadian dollar traded for 72.23 cents US when compared with 72.24 cents US on Wednesday.

The tumble in the loonie become tiny, nonetheless it no doubt become necessary consequently of most different currencies won in opposition to the U.S. dollar as of late, acknowledged Boudreau. The divergence comes after the Financial institution of Canada minimize its key passion price by half of a share level on Wednesday, with more cuts anticipated ahead given the weak point in the economic system.

“Canada’s been in my look, the with out a doubt one of many weakest predominant economies to commence up the year,” acknowledged Boudreau.

“The Financial institution of Canada is in the back of time desk, and I think they’ll need to minimize charges some distance more. Markets are slowly getting dilapidated to that truth that we’re going hang worthy decrease passion charges in Canada in six to eight months than in the U.S., and which methodology a decrease Canadian dollar.”

The December shameful oil contract become down 58 cents at US$70.19 per barrel and the December natural gasoline contract become up 12 cents at US$3.02 per mmBTU.

The December gold contract become up US$19.50 at US$2,748.90 an ounce and the December copper contract up a penny at US$4.35 a pound.

This file by The Canadian Press become first published Oct. 24, 2024.

Corporations in this legend: (TSX:GSPTSE, TSX:CADUSD)

Ian Bickis, The Canadian Press