CANADA STOCKS-TSX retreats from two-month high as US inflation data spooks investors
By Anand Gopal R and Fergal Smith
TORONTO, Nov 10 (Reuters) - Canada's main stock index fell on Tuesday, weighed by declines for metal mining shares, as hotter-than-expected US inflation data raised expectations for Federal Reserve interest rate hikes.
The S&P/TSX Composite Index .GSPTSE ended down 275.81 points, or 0.8%, at 36,170.45, after posting on Monday its highest closing level since September 4.
US stocks also fell as US consumer prices increased more than expected in October, cementing expectations for a rate hike from the Fed next month and fueling concerns the central bank may be more aggressive in raising rates.
Hotter inflation and Fed hikes "will likely put pressure on the US economy, which will then have a downstream effect on Canada as we’re a large trading partner of the United States," said Shiraz Ahmed, CEO of Sartorial Wealth.
Canada sends about 70% of its exports to its southern neighbor, including oil.
US crude oil futures settled 0.9% lower at $86.04 a barrel after US officials downplayed the need for additional military action against Iran, easing fears of additional Middle East supply disruptions.
The materials sector .GSPTTMT, which includes metal mining shares, was the biggest drag on the index, falling 3.9%, as the potential for aggressive Fed tightening weighed on gold. Gold dropped 2.6% and copper was trading 1.8% lower.
Consumer discretionary .GSPTTCD fell 0.8% and the interest-rate sensitive real estate sector .GSPTTRE was down 0.7%.
Among the major decliners was GFL Environmental Inc GFL.TO. Its shares declined 7.2% after the waste management firm said it had rejected buyout proposals and would stay public.
Just three major sectors ended higher. They included energy, which added 1.1%.