CANADA STOCKS-TSX falls as losses in materials shares eclipse energy gains
By Darshan Kumar R
Sept 24 (Reuters) - Canada's main stock index inched lower on Thursday as falling metal prices dragged materials shares, while a jump in oil prices boosted energy stocks but kept risk-taking in check as inflationary woes persisted.
The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE was down 0.2% at 35,695.2 points at 10:12 a.m. ET (1412 GMT).
Materials .GSPTTMT dropped 1.9%; shares of gold and silver miners led the declines, tracking lower silver and gold prices. GOL/
Helping offset losses was the energy .SPTTEN sector, which climbed 1.7% as crude oil prices jumped more than 2%.
Oil prices rose as little progress was made in diplomatic talks between the US and Iran, while uncertainty over a potential US ban on diesel exports added to supply concerns. O/R
Global government bond yields stayed elevated as higher crude prices aggravated inflation worries, prompting traders to increase bets on future rate hikes from central banks including the US Federal Reserve.
"Higher yields are becoming a more meaningful headwind for stocks, while the focus remains on oil prices and bond-market volatility," said Angelo Kourkafas, investment strategist at Edward Jones Investments.
The benchmark US 10-year Treasury yield stayed above 5% while its Canadian equivalent was last at 3.92%.
The yields, however, were off their session highs, offering some support.
Heavyweight financial stocks .SPTTFS gained 0.1%, with shares of banks including TD Bank TD.TO and Royal Bank of Canada RY.TO trading slightly higher.
On the economic data front, Canadian monthly retail sales fell by 0.7% in July, marginally better than an average of analysts' expectations.
In company news, Kinross Gold K.TO shed 9.8% after the miner lowered its 2026 and 2027 attributable production guidance.
BlackBerry BB.TO shares fell 1.6% despite the company raising its full-year revenue forecast.