TSX Ends Sharply Lower As Interest Rate Concerns Weigh

(RTTNews) - The Canadian market ended sharply lower on Thursday as hawkish comments from the Federal Reserve, and rising concerns about global economic growth due to surging interest rates dented sentiment.

The Fed, the Bank of England, the European Central Bank, and the Swiss National Bank, have all raised their interest rates, and most of these central banks have said further increases are likely as inflation remains at elevated levels.

As selling was broad-based, all the sectoral indices fell into the red. Materials, technology, healthcare, industrials and consumer staples were among the major losers.

The benchmark S&P/TSX Composite Index ended down 291.02 points or 1.46% at 19,600.63. The index dropped to a low of 19,512.87 in the session.

First Quantum Minerals (FM.TO) plunged 14.7%, Ivanhoe Mines (IVN.TO) tumbled 11.1%, and Canopy Growth Corp (WEED.TO) dropped 7.3%, on huge volumes.

Shopify Inc (SHOP.TO), Kinross Gold Corp (K.TO), Barrick Gold Corp (ABX.TO), Crescent Point Energy (CPG.TO) and Canadian Natural Resources (CNQ.TO) lost 2 to 4% on strong volumes.

Northland Power (NPI.TO), Docebo Inc (DCBO.TO), Winpak (WPK.TO), Boralex (BLX.TO), Fairfax Financial Holdings (FFH.TO) and Restaurant Brands International (QSR.TO) posted strong gains.

In economic news, a report from the Canada Mortgage and Housing Corporation showed housing starts in Canada edged down 0.2% over a month earlier to 264,159 units in November of 2022, above market expectations of 255,000 units.