Canada’s main stock index was suffering its worst day in more than two weeks on Friday, dragged by energy stocks as oil prices dropped for a second straight day on the prospect of interest rate hikes in the United States.
The TSX Composite index dropped 82.33 points to reach noon at 20,061.71.
The Canadian dollar was negative 0.08 cents to 80.16 cents U.S.
Westshore Terminals Investment fell $1.46, or 7.9%, the most on the TSX, to $17.03, and the second-biggest decliner was Gildan Activewear, down 46 cents, or 1.1%, to $43.02
BlackBerry forfeited earlier gains and lost a dime to $16.51, calling a halt to its rally amid the “meme-stock” frenzy. Shopify rose $20.99, or 1.2%, to $1,811.
On the economic slate, Statistics Canada reported new home prices increased 1.4% in May nationally, with prices up in 19 of the 27 census metropolitan areas surveyed.
The TSX Venture Exchange nicked ahead 0.78 points to 948.88.
All but three of the 12 TSX subgroups were down to kick off the session, consumer staples giving back 1.3%, energy cooling off 1.1%, and financials down 0.7%.
The two gainers were gold, better by 0.4%, and materials, picking up 0.3%, while information technology shares were unchanged.
U.S. stocks fell on Friday with the Dow Jones Industrial Average on pace to post its worst week since January, after St. Louis Federal Reserve President Jim Bullard told the media the first rate hike could come as soon as next year. Economic comeback plays led the market selloff.
The 30-stock index dumped 387.14 points, or 1.3%, to pause for lunch during a bruising day at 33,436.31, bringing its week-to-date losses to 3.1%.
The S&P 500 swooned 39.37 points to 4,182.49, pushing its loss this week to 1.5%.
The NASDAQ lost 110.56 points to 14,050.79.
Bullard said it was natural for the Fed to tilt a little “hawkish” this week and that the first rate increase from the central bank would likely come in 2022.
The market’s slide began after the Federal Reserve on Wednesday afternoon added two rate hikes to its 2023 forecast and increased its inflation projection for the year.
Friday also coincides with the quarterly “quadruple witching” in which options and futures on indexes and equities expire. Many expect trading to be more volatile in light of this event.
Prices for 10-Year Treasurys were sharply higher, bringing down yields to 1.46% from Thursday’s 1.52%. Treasury prices and yields move in opposite directions.
Oil prices recovered 86 cents to $71.90 U.S. a barrel.
Gold prices recovered two dollars to $1,776.80 U.S. an ounce.