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TSX ends down 129.42 points, or 0.6%, at 20,628.92
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Posts its lowest closing level since Jan. 30
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Newmont Corp shares fall 4.1%
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Osisko Mining tumbles 10.5%
(Adds details throughout, updates prices to close)
By Fergal Smith
Feb 6 (Reuters) -
Canada's main stock index fell on Monday to its lowest closing level in a week, pressured by losses in mining and technology shares as investors worried the U.S. Federal Reserve would keep interest rates high for longer.
The Toronto Stock Exchange's S&P/TSX composite index ended down 129.42 points, or 0.6%, at 20,628.92, its lowest closing level since Jan. 30.
The main
U.S. stock indexes also ended lower as investors awaited speeches by Fed officials this week for any change in the central bank's rhetoric after data last week showed strong job growth and strong services activity in January.
"The fear for investors is that strong jobs data in the U.S. equates to the Federal Reserve being aggressive with their interest rate hikes," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth. "That could continue to slow down the U.S. economy, which in turn will slow down our (Canadian) economy." Investors have been hoping that China's rapid reopening would provide a boost to Canada's commodity-linked economy. Canadian economic activity expanded in January at the sharpest pace in eight months as employment climbed and supplier deliveries speeded up,
Ivey Purchasing Managers Index (PMI) data showed.
The technology sector fell 0.9% and the materials group,
which includes precious and base metals miners and fertilizer
companies, lost 1.2%.
It was pressured by a 4.1% decline in the shares of
Newmont Corporation after the gold miner made a
$16.9 billion offer for Australian peer Newcrest Mining Ltd .
Osisko Mining Inc was also a drag. Its shares fell
10.5% after the company announced a "bought deal" private
placement of units.
First Quantum Minerals Ltd shares were down 8.1%
after the miner said its subsidiary, Minera Panama, has
suspended concentrate loading operations at the Cobre Panama
port.
(Reporting by Fergal Smith; Additional reporting by Shristi
Achar A and Shashwat Chauhan in Bengaluru; Editing by Shailesh
Kuber and Deepa Babington)
