CANADA STOCKS-TSX falls to eight-day low as US rate hike prospects hit mining shares

By Reuters News

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%.

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