Canadian Stocks Tumble On Inflation Worries, Set For Another Weak Close

(RTTNews) - The Canadian market is set to end on a weak note on Friday with stocks from across several sectors plunging sharply on selling pressure after data showed a bigger than expected increase in U.S. consumer price inflation.

The benchmark S&P/TSX Composite Index, which dropped to 20,196.16, is down 282.64 points or 1.37% at 20,281.25.

The market is down despite data showing Canadian economy added a net 39,800 jobs in May, above market expectations of 30,000, as the sharp acceleration in U.S. income has raised prospects for an aggressive policy tightening by the Federal Reserve.

The unemployment rate in Canada fell to 5.1% in May from 5.2% in April.

U.S. Labor Department data said its consumer price index jumped by 1% in May after rising by 0.3% in April. Economists had expected consumer prices to increase by 0.7%.

Technology, healthcare, energy, consumer discretionary, industrials and financials shares are down sharply.

The TSX Information Technology Capped Index is down 3.41%. The HealthCare Index is down 3%, while the Financials, Industrias, Consumer Discretionary and Energy indexes are down 2 to 2.27%.