Canadian Stocks Close Mostly Lower Amid Steep Drop In Oil Prices

(RTTNews) - Canadian stocks moved to the downside during trading on Tuesday, extending the downward move seen over the two previous sessions.

The benchmark S&P/TSX Composite Index came under pressure late in the session, closing down 138.16 points or 0.7 percent at 18,678.64.

The late-day weakness came as traders looked ahead to the U.S. Labor Department's report on consumer price inflation in the month of June.

Economists currently expect the report to show an acceleration in the annual rate of consumer price growth to 8.8 percent in June from 8.6 percent in May.

Concerns about the emergence of a new, more infectious Covid-19 strain in several parts of the world also continued to weigh on investors' minds.

Many cities in China are already taking steps to stop the spread of the new strain, leading to worries about another round of painful lockdowns, especially in Shanghai or Beijing.

A Covid-19 resurgence and the resumption of Chinese lockdowns could put further pressure on a global economy that is already being squeezed by aggressive monetary policy tightening by the world's central banks.

The weakness in the markets also came amid a sell-off by energy stocks, with the S&P/TSX Capped Energy Index plunging by 3.4 percent.

The weakness in the sector came as the price of crude oil for August delivery plummeted $8.25 or 7.9 percent to $95.84 a barrel, closing below $100 a barrel for the first time in two months.

Gold stocks also moved notably lower amid a decrease by the price of the precious metal, while healthcare stocks showed a strong move to the upside.