CANADA STOCKS-Miners, energy stocks drag TSX; c.bank meet in focus

Canada’s main stock index fell on Tuesday, dragged by mining and energy stocks, while expectations of a hawkish stance from the Bank of Canada in its meeting later this week further dented sentiment.

At 9:46 a.m. ET (13:46 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 16.76 points, or 0.08%, at 21,268.08, weighed by nearly 1% slide in mining and energy stocks. The index closed at a record high in the previous session.

The materials sector, which includes precious and base metals miners and fertilizer companies, lost 0.7% as gold futures fell 0.3% to $1,799.9 an ounce.

All eyes are on the Bank of Canada’s meeting later this week. Economists polled by Reuters see the central bank raising rates as early as the third quarter of next year, at least three months earlier than previously expected.

“There will be hawkish comments tomorrow as the elections are behind and there’s a sense of inflation coming, so it feels like its time to start talking about cutting some of the stimulus efforts,” said Gregory Taylor, a portfolio manager at Purpose Investments.

Investors are also focusing on corporate earnings as major companies including Lundin Mining Corp, Methanex Corp and Mullen Group are scheduled report results later this week.

After snapping a seven-month winning streak in September, the Canadian equity index has gained 6% so far this month, on course for its best monthly performance since Nov. 2020.

Canadian energy stocks were down 0.7%, after gaining in the past two sessions, even though oil prices remained near multi-year highs.

Amal S, Reuters

Original article: https://www.reuters.com/article/canada-stocks-idUSL4N2RM3OM