TSX falls for third day as investors 'chew through' bank earnings
Reuters
Published Feb 28, 2024 10:06
Updated Feb 28, 2024 16:32
By Purvi Agarwal and Fergal Smith
(Reuters) -Canada's main stock index ended lower on Wednesday for a third straight day as investors weighed earnings from some of Canada's biggest banks and braced for economic data this week that could guide expectations for the timing of interest rate cuts.
The Toronto Stock Exchange's S&P/TSX composite index ended down 75.13 points, or 0.4%, at 21,243.77. It added to its losses since the start of the week after posting on Friday its highest closing level in 22 months.
Wall Steet's main indexes also ended lower.
"It is a downtick for equity markets in general," said Colin Cieszynski, chief market strategist at SIA Wealth Management. "Markets are continuing to chew through the bank earnings."
National Bank of Canada (OTC:NTIOF) and Royal Bank of Canada (TSX:RY) both beat analysts' estimates for quarterly profit. National Bank rallied 2.3% but RBC was down 0.2% and the financials sector lost 0.3%.
"The weaker price action may be more about month-end rebalancing, and investors are waiting for the key inflation data in the U.S. tomorrow," said Angelo Kourkafas, investment strategist at Edward Jones Investments.
Thursday's release of the U.S. personal consumption expenditures price index for January could offer clues on prospects for Federal Reserve interest rate cuts.
Among other sectors, industrials lost 0.6% and technology was down 0.7%.
The energy sector was a bright spot. It rose 0.2% to post its highest closing level since Nov. 20 even as oil settled 0.4% lower at $78.54 a barrel.
"Even on days where oil is down a little bit the energy stocks have been quietly working their way and I think that's because generally we've got oil prices up in the high seventies rather than the low seventies," SIA Wealth Management's Cieszynski said.
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Written By: Reuters
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