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TSX ends down 0.4%, at 20,499.31
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Energy loses 1.6% as oil settles lower
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Materials group declines 1.2%
(Adds details throughout, updates prices to close)
By Johann M Cherian and Fergal Smith
May 10 (Reuters) -
Canada's main stock index fell on Wednesday as a drop in commodity prices weighed on resource shares, offsetting any benefit from U.S. inflation data that could encourage the Federal Reserve to pause hiking interest rates.
The Toronto Stock Exchange's S&P/TSX composite index ended down 86.42 points, or 0.4%, at 20,499.31.
Energy lost 1.6% as oil settled 1.6% lower at $72.56 a barrel, ending a run of three straight days of gains.
The materials group, which includes precious and base
metals miners and fertilizer companies, declined 1.2% as gold
and copper prices fell.
The U.S. Labor Department's Consumer Price Index (CPI) rose
4.9% in April, compared with expectations of a 5% increase,
raising hopes the Fed could move to the sidelines in June. "Today's inflation data confirms expectations that last
week's rate hike will prove to be the last, definitely leaving
some room for the Fed to pause," said Angelo Kourkafas,
investment strategist at Edward Jones Investments.
The interest-rate sensitive real estate sector was among
the sectors that gained ground. It rose 0.5% and industrials
were up 0.8%.
(Reporting by Johann M Cherian and Vansh Agarwal in Bengaluru;
Editing by Shweta Agarwal and Deepa Babington)
