April 5 (Reuters) – Canada’s main stock index fell on Wednesday as technology and industrial shares slid and economic data fueled worries that the U.S. economy was headed for a recession.
The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) ended down 116.21 points, or 0.6%, at 20,159.55, its second day of declines after it posted on Monday its highest closing level in nearly four weeks.
Wall Street’s S&P 500 and Nasdaq Composite indexes also fell as weaker-than-expected private payrolls data for March deepened worries that the rapid interest rate hikes by the Federal Reserve may tip the U.S. economy into a recession.
“The U.S. economy is clearly in slowdown mode and expectations should be for further labor market weakness,” said Edward Moya, a senior market analyst at OANDA.
Canada sends about 75% of its exports to the United States. Investors have also worried that recent stress in U.S. regional banks could lead to a credit crunch.
“As we think about what happened with the banks over the past month, the market attention will turn to the economic data to gauge the potential fallout from this stress,” said Angelo Kourkafas, investment strategist at Edward Jones Investments.
The Toronto market’s technology sector lost 1.9% and industrials were down 1.8%.
Hedge fund bets against TD Bank Group (TD.TO) hit $4.2 billion, making it the most-shorted banking stock globally, according to data provider ORTEX’s calculations, with some analysts concerned about the bank’s exposure to U.S. regional lenders.
TD’s shares ended 1.3% lower, its second straight day of declines, weighing on financials.
The heavily weighted sector fell 0.5%, while energy was also a drag, falling 0.6% as oil settled 0.1% lower at $80.61 a barrel.
Source : Reuters
