CANADA STOCKS-TSX falls from four-week peak as miners, tech stocks weigh
Oct 22 (Reuters) - Canada's main stock index pulled back from a four-week high on Thursday as weaker gold and copper prices weighed on mining stocks, while tech shares slipped on fresh concerns over AI spending following Meta's META.O quarterly results.
The S&P/TSX Composite Index .GSPTSE was down 0.8% at 36,032.84 points as of 10:13 a.m. ET. The benchmark had hit its highest level since September 22 on Wednesday after Canada unveiled a multi-billion support package for sectors hit hard by US tariffs.
Copper prices fell to a five-week low due to higher inventory, while gold prices dropped over 2% on increased expectations for higher-for-longer US interest rates
The materials sector .GSPTTMT, including metal miners, dropped 4.4% to its lowest since August 5
Tech stocks were impacted by fresh worries on AI spending after Meta introduced new non-voting shares on Wednesday to fund its costly expansion
Canadian tech stocks .SPTTTK declined 1.5%, with hardware solutions firm Celestica CLS.TO falling 7.2%
"The market is starting to get concerned about the spending. Celestica is very much linked to the AI trade because of the work that they do for some of these hyperscaler companies," said Brian Madden, chief investment officer at First Avenue Investment Counsel
Brent crude prices rose 2.6% to their highest since May after more Houthi attacks in Saudi Arabia heightened fears of a broader escalation in the Middle East conflict and prolonged disruption to crude supplies O/R
"There is increasing chatter that the US and Israel may step up the campaign with more airstrikes after the US midterm elections in a couple of weeks. So it might be a case of things getting worse before they get better," added Madden
Energy stocks .SPTTEN slipped 1.3%
Canada's September producer prices increased 2%, compared with a 1.3% rise in August, amid higher energy and petroleum product prices
Logistics firm Mullen Group MTL.TO rose 8% to the top of TSX after reporting quarterly results above estimates