TSX hits a one-week low as financials retreat; losses mostly pared

Thu May 19, 2016 5:33pm EDT
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index pared losses after hitting a one-week low earlier on Thursday as the materials group rose more than two percent, offsetting declines in the financial and industrial stocks.

Worries that the U.S. Federal Reserve might raise interest rates as early as June weighed on stock markets globally.

"The market seems to be still digesting the minutes from the Fed," said Ben Jang, portfolio manager at Nicola Wealth Management, adding the sell-off has been "pretty orderly."

The financials group fell 0.5 percent as some recent gains were pared, while industrial stocks fell 0.8 percent as railway stocks retreated.

Royal Bank of Canada (RY.TO: Quote) fell 0.8 percent to C$77.57 and Manulife Financial Corp (MFC.TO: Quote) declined 1.6 percent to C$18.40, while Canadian National Railway Co (CNR.TO: Quote) was down 1.9 percent at C$75.38.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 8.69 points, or 0.06 percent, at 13,817.32. Six of the index's 10 main groups ended lower.

Energy stocks fell 0.2 percent as oil prices dipped, although firefighters made progress against a wildfire in the Fort McMurray region of Alberta as a shift in winds pushed it away from communities and oil sands facilities.

Canadian Natural Resources (CNQ.TO: Quote) dropped 1.5 percent to C$37.44, while U.S. crude CLc1 prices settled at $47.16 a barrel, down 3 cents. [O/R]   Continued...

A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.   REUTERS/Mark Blinch