CANADA STOCKS-TSX falls to eight-day low as US rate hike prospects hit mining shares
By Darshan Kumar R and Fergal Smith
Sept 24 (Reuters) - Canada's main stock edged down to an eight-day low on Thursday, led by declines for metal mining shares, as the continued sell-off in the global bond market weighed on investor sentiment.
The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE ended down 44.97 points, or 0.1%, at 35,706.46, its lowest closing level since September 16.
"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.
Bond prices around the world have been under pressure for months as the US-Israeli war on Iran has pushed up energy prices while growth has remained resilient, with the US 30-year yield touching on Thursday its highest level since 2004.
The Federal Reserve will likely need to raise interest rates again to curb unacceptably high inflation, two Fed policymakers said.
U.S. crude oil futures settled 2.7% higher at $94.61 a barrel after a Houthi missile attack on Saudi Arabia revived supply disruption fears.
The materials group .GSPTTMT, which includes metal mining shares, dropped 1.1% as the prospect of higher US interest rates weighed on gold and silver prices.
Shares of Kinross Gold K.TO shed 11.3% after the miner lowered its production outlook.
Another major decliner was Gildan Activewear GIL.TO. Its shares tumbled 11.7% after TD Cowen slashed its target price on the stock
Consumer discretionary .GSPTTCD lost 2% and utilities .GSPTTUT ended 0.8% lower.
Helping to limit the TSX's decline, energy added 1% and technology .SPTTTK was up 2.1%.
BlackBerry BB.TO raised its full-year revenue forecast after its QNX software business reported record quarterly revenue, driven by growth in automotive and new design wins. Its shares were up 3.6%.
In domestic data, retail sales fell by 0.7% in July from June. A preliminary estimate for August was more upbeat, showing sales rebounding by 1.3%.