CANADA STOCKS-TSX slips as financial shares lead losses, global yield surge weighs

By Reuters News

By Darshan Kumar R

- Canada's main stock index fell on Thursday led by losses in financial stocks as a global bond rout, which drove borrowing costs to multi-decade highs, kept investors on edge.

The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE fell 0.6% to 35,022.38 points at 10:41 a.m. ET (1441 GMT).

  • Nine of the 11 major sectors on TSX were trading in the red, with heavyweight financials .SPTTFS leading the losses, down 1.7%

  • EQB EQB.TO, Bank of Montreal BMO.TO and Royal Bank of Canada RY.TO were all down over 2%

  • Broader market weakness dragged other sectors lower as a global bond rout sent yields in the US, France and Japan to levels not seen in decades

  • The benchmark 10-year US Treasury yield rose to 5.34%, its highest level since 2002, while the Canadian equivalent climbed to 4.01%, near its highest since 2023 US/

  • Limiting the losses, technology .SPTTTK stocks rose 2.3%, tracking optimism surrounding the US tech sector after Micron Technology's MU.O better-than-expected revenue forecast reinforced faith in the AI trade

  • "The market leadership remains concentrated in technology, whereas the outlook for materials will largely depend on whether the recent strength in the US dollar begins to fade," said Allan Small, senior investment advisor of Allan Small Financial Group with iA Private Wealth

  • Energy .SPTTEN was the only other sector in positive territory, rising 1.2% as oil prices continued their rally

  • Crude rose after China suspended oil products exports, potentially tightening fuel markets, while investors assessed renewed diplomatic efforts to resolve the conflict between Washington and Tehran O/R

  • Canada's manufacturing sector grew at its slowest pace in six months in September, with the PMI easing to 51.5 from 53.0 in August as trade frictions and higher energy prices weighed on the sector

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