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TSX is gaining more than 500 points as commodities join the stock’s retreat

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Concerned about the slowdown in the world economy

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Canada’s major stock index on Monday fell below a three-month low hit by Shaw Communications and resource-related stocks as commodities retreated due to fears about a slowdown in global economic growth.

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By the start of the day, the Toronto Stock Exchange’s composite S&P / TSX index had fallen 548.33 points to 20,2084, surpassing its lowest level since Jan. 25, when all subsectors were highlighted in red.

Shaw Communications Inc fell 8.7 percent to the bottom of the index after Competition Commissioner Canada said it intends to oppose Rogers Communications Inc’s proposed merger with the company for $ 20 billion.

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The energy sector fell 3.8 percent due to falling oil prices, weighed down by a strong dollar and worries about demand due to prolonged coronavirus restrictions in China, the world’s largest oil importer.

The materials sector, which includes the mining of precious and base metals and fertilizer companies, lost 2.6 percent as gold prices fell 1 percent as the strengthening dollar and boosting U.S. Treasury profitability affected the attractiveness of nonprofit bullion.

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“The commodity price rally on Friday helped soften the blow in Canada against the US, (Monday) we see a reversal before stocks are under pressure and commodities are under pressure,” said Colin Cieszynski, SIA’s chief market strategist. Wealth Management.

Technology stocks listed in Toronto fell 2.9 percent, the third consecutive session fell, tracking the weakness of the US Nasdaq index with technology.

The financial sector fell 1 percent, while the industrial sector fell 1.3 percent.

Concerns about the slowdown in global growth amid blockades in China and the prospect of tightening policies by major central banks have put pressure on global investor sentiment.

Investors expected earnings from major Canadian companies including Suncor Energy, Manulife Financial, Canadian Tire and Canada Goose, which are due to appear later this week.

“Unless there is a big surprise from a particular company, most of the macro-forces will manage the markets,” Cieszynski added.

© Thomson Reuters 2022

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