TSX falls with commodity prices
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index retreated on Tuesday as lower commodity prices weighed on mining and energy shares, while the industrial and financial services groups also lost ground.
Copper, gold and oil were among a string of commodities to trade lower, pressured by rising copper inventories and U.S. oil production levels as well as expectations for a U.S. interest rate hike this month. [MET/L][GOL/][O/R]
"It appears that both oil and copper have rolled over from a technical analysis perspective, which has caused the TSX to decline," said Robert McWhirter, president and portfolio manager at Selective Asset Management Inc.
Copper prices CMCU3 declined 1.5 percent to $5,772.85 a ton, U.S. crude CLc1 prices settled 6 cents lower at $53.14 a barrel and the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 20.97 points, or 0.13 percent, at 15,608.78.
Still, the index has gained 2.1 percent this year after climbing 17.5 percent in 2016. In February, it posted a record high of 15,943.09.
"In spite of any near term grinding that's going on in the stock market, we still think that we've got another two years ahead of us (of rising stock prices)," McWhirter said.
"You only usually run into trouble when short-term interest rates are higher than long-term interest rates. At the moment that yield inversion hasn't happened."
Eight of the index's 10 main groups ended in negative territory on Tuesday, with the materials group, which includes precious and base metals miners and fertilizer companies, losing 0.6 percent. Continued...