S&P/TSX composite index closes down in broad-based decline

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Canada’s main stock index closed down Wednesday in a broad-based decline on subdued trading while U.S. markets were closed.

The S&P/TSX composite index closed 94.40 points lower at 21,516.90.

The decline marked a continuation of a market retreat that has seen the TSX index down about 4.4 per cent in the last month, while the S&P in New York is up 3.5 per cent, said Michael Currie, senior investment adviser at TD Wealth.

“So we definitely have a tale of two markets here; U.S. keeps getting stronger, Canada keeps getting weaker,” said Currie.

“It’s certainly not crashing by any stretch, but the general trend has been negative and that seems to be more of what’s continuing today.”

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The decline in the Canadian market happened as U.S. markets were closed in observance of the Juneteenth holiday.

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The holiday led to more subdued trading in Canada as well, with about 96 million shares traded on the TSX compared with an average volume of 226 million.

Industrial and health care sectors led the declines, down about 0.95 per cent and 1.1 per cent respectively, while financials were down 0.5 per cent and energy was down about 0.2 per cent.

The Canadian dollar traded for 72.94 cents US compared with 72.87 cents US on Tuesday.

The rise in the dollar came the same day the Bank of Canada released deliberations around its decision earlier in June to lower its key rate for the first time in more than four years.

The deliberations showed the central bank’s governing council thought about waiting until July to lower rates.

There is some concern that as the Bank of Canada begins to lower rates, the loonie will slide against the U.S. dollar, but so far it hasn’t seen too much pressure.

“The Canadian dollar is actually holding up pretty well,” said Currie.

He said that while the deliberations show some hesitancy from the Bank of Canada, markets are still betting about 65 per cent in favour of another cut in July.
Commodity markets were also closed for the U.S. holiday.


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