The S&P/TSX composite index closes broadly lower

TORONTO — Canada’s main stock index closed broadly lower on Wednesday in modest trading while U.S. markets were closed.

The S&P/TSX composite ended 94.40 points lower at 21,516.90.

The decline marked a continuation of a market pullback that has seen the TSX fall about 4.4 percent in the past month, while the S&P in New York rose 3.5 percent, said Michael Currie, an adviser to investment principal at TD Wealth.

“So we definitely have a tale of two markets here; The U.S. keeps getting stronger, Canada keeps getting weaker,” Currie said.

“It’s certainly not collapsing at all, but the overall trend has been negative and that seems to be more of what’s continuing today.”

The decline in the Canadian market occurred as US markets were closed for the Juneteenth holiday.

The holiday led to lighter trading in Canada as well, with about 96 million shares traded on the TSX, compared with an average volume of 226 million.

The industrials and healthcare sectors led the declines, down about 0.95 percent and 1.1 percent, respectively, while financials fell 0.5 percent and energy fell about 0.2 percent.

The Canadian dollar traded at 72.94 US cents, compared with 72.87 US cents on Tuesday.

The dollar’s rise came on the same day the Bank of Canada launched deliberations on its decision in early June to cut its key rate for the first time in more than four years.

The deliberations showed that the central bank’s governing board was considering waiting until July to cut interest rates.

There is some concern that as the Bank of Canada begins to cut interest rates, the rear will slide against the US dollar, but so far it hasn’t seen much pressure.

“The Canadian dollar is actually holding up pretty well,” Currie said.

He said that while the deliberations show some hesitation on the part of the Bank of Canada, markets are still betting about 65% in favor of another rate cut in July.

Commodity markets were also closed for the US holiday.

This report by The Canadian Press was first published on June 19, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press